Black Gold, Texas Tea

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It is no secret that one of the things holding what remains of the economy together is low oil prices. That's more than somewhat recursive, of course, since its the anticipated slack demand brought on by global recession (or fear thereof) that's depressing oil prices. But Western salvation is Mideast disaster. As OPEC members, many already well under their petrol-augmented budget lines owing to subsidy stuffed fiscal policy, begin to panic all sorts of strange tactics emerge. Cooperation with Russia, for instance. 2 million barrel per day cuts. Earnest promises that there will be "no cheating this time" and economics lessons from oil ministers who enjoy touting phrases like "the consumer appreciates a robust market for oil." All of this, of course, masks something approaching panic. This should concern us. What does a panicked OPEC do if this cut fails (as is probably quite likely)?
OPEC ready for deepest oil cut to rescue prices [Reuters]

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