OPEC Unchanged, Oil Drops

Oil reached its lowest price in seven years, when the OPEC meeting decided not to balance production on Dec 4th. “For the first time in decades, oil ministers dropped any reference to the group's output ceiling, highlighting disagreement among members about how to accommodate Iranian barrels once Western sanctions are lifted.” U.S. crude was down $1.12 to $38.85 per barrel, a drop of nearly 3 percent, the lowest price since March 12, 2009. OPEC's output of over 30 million barrels per day has compounded the oil glut, pushing production 0.5 million to 2 million bpd beyond demand.