Article

Introduction

The article is all about the sudden announcement of Organization of Petroleum Exporting Countries (OPEC ) of production-cut of almost 520 ,000 barrels of crude oil per day . It is a surprise announcement because minutes before the press conference on OPEC 's Vienna headquarters , Saudi Arabia Oil Minister Ali Nami , that they are d on the current price of crude oil on the world market despite the 30 slid off its price from mid-July

Challenges

As the law of supply and demand dictates , the biggest challenge now is how to

adapt again on this cut on the supply of crude oil worldwide Lower productions would possibly mean an increase on the price of crude oil in the world market . Different countries are still benefiting on the fall of the price of oil after surviving hard times on the height of worldwide crises on oil

Alternatives

Despite the recent announcement of OPEC on production cut , several analysts said that the changes on the price of oil , that will surely follow , are just normal . It can be noted that the effort of Saudi Arabia can somehow ease the speculations on oil prices . Just recently , Saudi Arabia committed to produce enough supplies of crude oil to their customers during the surging of its price on the world market

Recommendations

The problem of unstable prices of crude oil and petroleum products on the world market can be resolved . Countries who import petroleum products should develop other possible sources of energy . They can tap their natural resources to generate renewable energies such as wind geothermal , hydro and solar energies . They should also promote among their citizens to save consumption on petroleum products by using their mass transit system or using bicycle instead of petroleum-chugging vehicles . By doing such recommendations , the large demand on petroleum products worldwide will be lessen and it will result on dramatic fall of its prices . On this way , the monopoly of OPEC on oil products will weaken and they will be forced to make the price of oil competitive and affordable to other countries...