In an emergency meeting on Friday, Organization of the Petroleum Exporting Countries (OPEC)  is contemplating the idea of curtailing crude oil production.  It is logical that the falling crude oil prices due to decreasing demand in the U.S. and Europe was not welcomed by OPEC. Decrease in production will soar up gas prices. The ripple effect will result in increasing prices of other goods too. Hence, the economy should brace for increase in inflation. This will make the economic downturn even more elaborate.

It will slower the growth of all economies heavily dependent on oil, like China. China’s slowing growth will have further adverse effects on many  other economies, including United States.  Less than two weeks left for the presidential election, none of the candidates will want more complications. Probably, they won’t have to address this issue until one of them become President, because, effects of lower oil production might take a little longer to manifest. 

The brighter side is that the stock market became upbeat with the news. Any positive turn on stock market is welcomed right now. Let’s just wait for the final decision from the OPEC.