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New Worry for OPEC: Oversupply
Oil at $43/barrel and still falling. . .
Like cheap oil? OPEC doesn't.Oil prices have been at record highs this year, with money gushing into the coffers of oil producers. And as leaders of the Organization of Petroleum Exporting Countries leaders head into a final meeting this year, the topic on their minds and on Friday's agenda is whether there will be too much oil next year.
After hitting a record of more than $55 a barrel in October, oil prices in New York have fallen significantly. Crude oil for January delivery rose 56 cents to $43.10 a barrel Monday on the New York Mercantile Exchange.
Because of OPEC's efforts, there is now more oil on the market than is needed. With the group's production at its highest in 25 years, some producers fear oil prices will tumble as demand slows next year on high prices and a usual seasonal brake in the second quarter. OPEC might be tempted to act preemptively and reduce output.
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