The price per barrel is now approaching $42. We should consider the implications. If the price of crude continues to fall, then at some point there will be widespread shut-downs of production and exploration.
OPEC will meet soon to seek a solution to the decline in their resource basis that is inherent in the massive price decline. There has been so much destruction of demand in the course of the world economic crisis that it may not be possible for OPEC to enforce restraint on the financial "hunger" of its members for the funds that come from high levels of production. In other words, this decline in price may be beyond the power of OPEC to reverse. The decline in the oil market has become emblematic of the larger economic decline. Is the world headed for another Great Depression and is the oil industry leading the way down into "the pit?"