![\"OPEC\"](\"https:\/\/www.ncr-iran.org\/en\/wp-content\/uploads\/sites\/2\/2011\/06\/OPEC.jpg\" "\\"OPEC\\"")
<\/p>\n<\/p>\n
Brent crude oil touched a fresh four-year low on Friday, knocking down both energy-related shares and currencies, after the Organization of the Petroleum Exporting Countries (OPEC)’s move not to cut output reinforced prospects of a worldwide oil supply glut.<\/p>\n
The drop includes several factors but the most immediate one is considered to be Thursday\u2019s decision by the Organization of Petroleum Exporting Countries at their meeting in Vienna to not cut production, according to the Washington Post.<\/p>\n
The long term reasons include booming U.S. and world oil production, little demand in Europe and Japan and improving automobile fuel efficiency standards.<\/p>\n
Almost twice as many barrels a day of crude oil are being produced now in the U.S. compared to the mid-2000s.<\/p>\n
There has been increase in production in Canada and Russia.<\/p>\n
One factor which has played a role is that there is little demand in many regions including Japan and Europe.<\/p>\n
More efficient cars in some countries, particularly the U.S., has lowered demand.<\/p>\n
OPEC\u2019s decision is not good for the Iranian regime. A low price means a budget revised down for the regime from forecast barrel prices of $100 to $60-$70.<\/p>\n
Already the Iranian regime has decided to base their budget for next year on $70 dollars a barrel.<\/p>\n","protected":false},"excerpt":{"rendered":"
Brent crude oil touched a fresh four-year low on Friday, knocking down both energy-related shares and currencies, after the Organization of the Petroleum Exporting Countries (OPEC)’s move not to cut […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[175],"class_list":{"0":"post-17599","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-economy","7":"tag-updated"},"yoast_head":"\n