The head of Opec has reiterated that it will not try to shore up plunging oil prices by reducing production.

"The decision has been made. Things will be left as is," said Abdallah Salem el-Badri, secretary general of the oil producers' cartel, speaking in Dubai.

On Friday Brent crude dropped below $62 a barrel, its lowest price since 2009.

"The fundamentals should not lead to this dramatic reduction [in price]," Mr el-Badri added.

Mr el-Badri said Opec was "assessing the situation to determine what the real reasons behind the decrease in oil prices are".

The comments are Mr el-Badri's first since Opec's meeting in Vienna last month, where it decided to leave production levels unchanged.

Mr el-Badri said its decision was not aimed at undermining other oil producers.

"Some people say this decision was directed at the United States and shale oil. All of this is incorrect. Some also say it was directed at Iran. And Russia. This also is incorrect," he said.

The price of Brent crude has dropped almost 50% since June on sluggish global demand and rising production from the US.

On Friday, it settled at $61.46 a barrel after the world energy watchdog, the International Energy Agency, forecast even lower prices on weaker demand and larger supplies next year.

http://www.bbc.com/news/business-30468848#

Saudi Arabia is the Walmart of oil producing nations. They can endure very slim margins long enough to outlast those whose oil requires fracking or other processes to extract it, and whose cost of production is therefore higher than the Saudis'. I think North Dakota will turn out to be the KMart of oil production. Remember Kmart?

Could also be another scam by the banksters and fraudsters. Don't forget, the Repubs hold the legislative power now.

I think Gramps is right. Fracking, oil sands recovery, etc. pose a threat to the OPEC money machine. However, those alternate sources of oil also require a price above $80 a barrel and sometimes a lot more just to break even. Saudi Arabia only requires $2 a barrel. Other OPEC nations may require more to produce oil but they can all withstand lower prices for long enough to end the novel means of production.