Crude Control: Production Cuts at OPEC Meeting?

OPEC is facing a challenging situation with oil prices at a four-year low, trading below $73 per barrel for the first time since 2010. The organization is considering cutting production for the first time since 2009. Historical context is provided, highlighting a past price war with Saudi Arabia in 1986 that led to a significant drop in oil prices and a collapse in the US oil industry. This historical perspective underscores the potential consequences of current market dynamics.

What is the main reason for the OPEC meeting in Vienna?

• To celebrate their anniversary

• To negotiate with the U.S. oil drillers

• To address the falling oil prices

• To discuss increasing oil production

What was the price of oil per barrel the last time OPEC met in June?

• Less than $50

• Around $73

• 30% more than the current price

• Exactly $100

What significant event occurred in 1986 related to oil prices?

• Oil prices stabilized

• Saudi Arabia initiated a price war

• The U.S. became the leading oil producer

• OPEC increased production

What was the impact of the 1986 price war on the U.S. oil industry?

• Prices soared to new heights

• It led to increased production

• The industry collapsed

• The U.S. gained market dominance

How did the 1986 price war affect Saudi Arabia's position in the oil market?

• They became a minor player

• Their influence remained unchanged

• They regained their leading role

• They lost their leading role