Production Cuts Send World Economy into a Slump
Editorial, New York Times | October 27, 2008
OPEC’s decision to cut output by 1.5 million barrels has not stopped oil’s slide. ++ Production cuts could result in an even worse crisis. ++ The energy sector is facing a mini crisis with analysts expecting “global demand for crude to fall this year for the first time in a quarter-century,” as consumption slows in the world’s biggest consumer areas like Asia and the US. ++ Exporters should be aware that production cuts “would condemn the world economy to an even deeper slowdown and, incidentally, impair demand for a very long time.”
