Eugene David ...The One-Minute Pundit |
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Sunday, October 19, 2008
OPEC Plans to Cut Supply as Oil Prices Head Toward $50 a Barrel
``OPEC is going to try to prevent some of the price decline,'' Francisco Blanch, head of global commodities research at Merrill in London, said in a Bloomberg television interview. ``It's going to be very difficult to stem a price fall.'' ---------------------------------------------------------------------------------- Falling oil prices dent Hugo Chávez's clout Commodities prices overall are slipping, generating new concern in a region heavily vested in exports of soy, copper, and crude. But it is Chávez who could stand the most to lose: a new report from Deutsche Bank says that Venezuela needs prices to stay at $95 a barrel in order to balance its budget. Coupled with production declines, Chávez's days as the ultimate benefactor could be coming to a close. See? Not all the economic news is bad.
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