opec no longer is supply-side. we are entering a new era for oil prices where the market itself will manage supply and no longer saudi arabia and no longer opec. the reaction was for oil to fall as low as 2009. economies,ller nigeria, algeria, iran, venezuela, they needed a cut. >> let's bring in david real quick. there are still in the financial markets that shake things up like a sharp luncheon oil. the big piece of news overnight, the latest forecast , they arets short-term barriers. from energythis one analyst, we could see west texas drop as low as 60-70. it could prop up prices if you get something geopolitically or a harsher than expected winter. goldman sachs rates the potential for further decline -- the fundamental issue is the supply glut. standard slashed their forecast and made the case for brent. we're looking at perhaps $68 for the first quarter next year. long a supplyhow glut will stay and who cuts first. prices -- hello do prices have to get for them to actually start saying it's to being profitab

stay tuned for opec coverage. it's a big day coming up tomorrow. >>> harry, chief market strategist from bnp paribas, what do you think? good morning. >> good morning. it will have to be a meaningful cut in order to support the market. we're looking for. >> narrator: between 1 million to 1.5 million in cuts per day. it is in their best interest to reach the solution. we'll see if opec pulls a rabbit out of its hat at this meeting. >> i know a lot of people would disagree sxgs, look, we're not hurting yet. there was a time when oil prices are lower than where they are now. we don't have to hang on to $1 headline million barrels a day, do we? >> certainly there are various opinions out there. the overall consensis is devices 50/50 as to whether or not they do anything. some argue the prices have to go lower to shut down u.s. oil production. but in the end, relative to the second argument, we know u.s. shale oil is here to stay and opec would have to keep prices low for probably over a year before they start denting

and opec? >> that is the idea, market share, and trying to hold onto market share in the united states. , while it has produced a lot of oil, the gulf, trees looked countries like to point to producexpensive and it ain't they can take them out quickly because the production profile -- they think they can take them out quickly because the production profile is very big. to starta lot of cash another well. if they bring the price down, they will not have the money to start the next well. they think they can clear them out quickly. we heard the russians say by the middle of next year prices will stabilize. that might be optimistic, but most gulf countries think in two years they will be done with that shall producers. >> thank you so much, ryan chilcote. storesear people hit the and shop online earlier and earlier to score black friday deals. i was online, too. some retailers are setting new records. julie hyman has the trends we see. i saw amazon television sets for lesson $300. it was crazy -- l

it's not just opec. it will not necessarily change the picture if the nonopec countries don't share the burden. >> clearly, a divided opinion on what opec should have done yesterday, but we did not see an oil cut. jason gammell from jeffries joins us to help us understand where the price of oil goes from here. jason, how are opec countries going to secure their budgets without the price of oil back above $80 a barrel? >> they're simply not. they're going to have to break into their foreign currency reserves to keep things balanced in the near term. i don't think strategically anyone in opec wants to see oil prices below $80 or even below $90. but tactically, they're trying to help others to force the burden on reducing production with them. i think what we'll see is capital spending cuts in places like the united states that will help to share the burden with opec over the medium term. >> following the announcement, brent crude hit its lowest levels since august 2010. how much lower can it go? >> setting

it's clearly opec 4 and opec 1 which is saudi. it's up to them at this stage.in do they want to take after a 40% drop in prices. >> you talk about the prospect for more m&a activity. a lot of oil companies will need to merge to combine some of their activities to shoulder lower prices in oil. we saw halliburton and baker hughes announce a deal. halliburton down 11% which has taken down the value of baker hughes because it's a part stop deal. i wonder if you think some of the deals announced would be in, not crisis mode but would be under pressure by some of these prices. where else in the energy complex do you think they'll see similar pressure to do deals? >> i think we are going through unprecedented market conditions. this is a big change after many years of opec trying to act with the prices. now we are seeing a totally different market where the swing in prices could be $50, $60 on a forward basis. this is going to lead to a rethinking of the way people operate in the industry. simply because higher volatility means that the cost of capital is going to be

context, we have some fairly big statements about what opec did yesterday.t is hard to overstate the way opec has taken the risk of action here, is it taking them time to get the heads around? >> what to keep in mind is that opec is only 30% of global oil supplies other influences not as large as it used to be. your opec. -- >> there is generally a lack of agreement and they don't want at this time to keep the oil price dropped up and are happy to see it fall. >> where does this leave us with the great discussion around deflation has been one of the contributing factors. talked about positioning is that view threatened by the fact that inflation might not pick up and might be difficult for central banks moving forward? i think at the moment the falling oil price and the deflationary impulse is giving some banks every reason to delay raising rates. we think in the u.s. and the u.k. that the economies are robust enough to have interest-rate increases. they will air on the side of in the side of being slow to raise rates. the environment that you have seen is t

the over supply is not what opec did. it is not fair to ask only opec to fix pipt and only opec. other side of this is there were people -- the hawks within opec who were desperate to get a production cut despite they weren't prepared to do it themselves. many times in the last three days, the iranian oil minister said he will do something. listen. >> we think it's a necessity to do something which has a short effect on the market. and in my understanding it's not a good way to leave the market. and to go home and to wait based on its nature. react in this situation. >> so look. we want a long-term stability of the market. we don't want quick fixes. we want to do something that has a short-term effect on the market. we don't want to go away and leave the market as it is. i spoke to another where -- i said did you personally go for a cut? he said, i did. itted a cut. you can see their ham strung as are every producer around the world. they're terrified you're not going to get the investment at this level. whether you're looking at shale, siberia. they are worried about investment.

the opec meeting is the big story today. angola oil minister, some headlines from him, as well, he's not too happy with current oil prices. algeria's oil minister wants oil prices to return to previous levels. we heard from the algae ya oil minister that they would be ready to cut some of algeria's production. they want oil price toes return to previous levels. so potentially some market moving headlines from various oil ministers. oil prices in focus. trading down about 30% since june 2014. we'll keep you updated on that story. >>> now, it is thanksgiving and for all of you celebrating the holidays, happy thanksgiving. it was a good day to be a ring tailed lemur in illinois on wednesday. the animals were given an early thanksgiving day lunch. wow, they really enjoyed. coming up, we will tell you where in london you can find such a spread. that's coming up. >>> welcome back, everybody. here in america if you're joining us, maybe you're taking a day off and you're up early. shares in samsung higher after the company announced

opec and part of people have frequently floated the notion that russia could join opec but it does notedible history within, lots of countries within opec do not have a credible history and russia as an a denim does not have a credible history so the extent to which geopolitics could interview to both of its market whether it comes from russia or the middle east, the problem with that argument is that geopolitics is already running pretty high, this meltdown has come with a very robust filing geopolitical backdrop. much, gilberto harrison this comes back to retail by definition can you imagine going under two dollars a barrel per gas? at the you take a look problems we have had with consumer spending, when you are paying four dollars or five for dollars a gallon for gas it really hit the average person tremendously in the pocket. prices decline in gas and the effect on spending is it specific -- specifically about the extra dollars or is it more psychological? >> i think it totally hits their pocketbook. it is $100 $300 a year for the average consumer and that would go into consumable

why opec could eventually fail. welcome to "street signs." >>> plus, why so many missed the economic recovery. your best stock bets heading into the end of the year. hello, mandy. >> hi, everyone. i'm mandy drury. we are watching the s&p and the d dow. this could be the 30th record close of the year. right now we are holding in positive territory just marginally. >>> well, to paraphrase the old saying, life is busy happening while you are sitting there waiting. those sitting there waiting are going to wake up and realize it has now been happening around them for three years. and we get more evidence of that with steve liesman here with recovery in full swing. you know what i mean by that, right? >> i love that. it is pretty deep there, brian, for a business show. that's pretty good. >> it really is. >> let me tell you, though, i disagree with you a little bit. people have been waiting for three years for this to happen, but in the last five quarters, we have had four of the past five quarters we have been above 3.5%

we used to say opec and everyone would jump. today, though, it is opec losing some of its relevance, nina? >> opec still has about 80% of the world's proven oil and gas reserves but it only pumps about 40% of the world's crude at the moment. and the decision we saw this week really raises some credibility issues for opec. many people will be asking themselves, especially the members within opec themselves that wanted the price to rise and supply to be cut, they'll be asking themselves what really is opec's role here? because opec was set up to try to police supply to try to keep prices high for its members. one school of thought dictates that what saudi arabia is trying to do is protect its business model in the long term, keep the prices low to ride out the current shale oil gas boom in the united states, but a lot of people skeptical about whether or not this will come at the cost of severe disruptions for opec down the line as koufrnts like nigeria and iran feel the bite. the current oil price today stands at even a third of

opec decided not to cut output.e members are using the price were to challenge non-opec members. the chilcote caught up with nigerian oil minister after the decision. >> can you give us your view of the decision and a little bit of a sense of the deliberations? >> they were very serious. hasy economy in there [inaudible] however, maintaining the level sharphelp minimize a decline. we will watch and see what happens. >> what about venezuela's argument the cut is necessary? >> not only venezuela. of economiesber believe that. i think we would come to consensus because that is the best they and the best thing for the global market. sense that at these levels american crude producers can be shaken out of the market? >> and not sure they can be shaken out, but i do think over the next few months and years -- i am not sure they can be shaken out, but i do think over the next few months and years they will come to some equilibrium in terms of the prices and that sooner or later they will [indiscernible] willxt time around

even opec producers will make more.e they will cut, what are the chances they will adhere? saudi arabia is trying to wield power. position totrong wield power and make sure other opec members either come on board and stick to the cuts they decide tomorrow or lower oil prices could help saudi arabia in the future. maintaining their market share. in the future more oil will be required. making sure there will be higher break even. oil produces will be taken out of the market. c> this is naimi and ope telling the world and the u.s. you cut first. or do you think this will resolve itself? markets will support oil longer-term? >> it's very political the way the prices are. the market was being driven by fundamentals earlier a few weeks ago. now it is looking more political. saudi arabia is definitely -- not just saudi arabia -- any of had member. -- any opec member. they all want high oil prices. if they want their fiscal budgets to be balanced, they need high prices. in the last two or three years, saudi arabia has managed

the largest opec member was against it. it shocked the international oil markets sending energy shares tumbling. this is bad news for oil-pr oil-producing countries. opec attorney general says there is no need to panic. >> we have a very different price. now price decline that does not mean we should really rush and do something. we have to wait and see how the market sits. >> well, nina is with us. why didn't they cut? >> opec, max, some analysts say, abdicating of responsibility as a swing producer in the oil markets. what they are hoping is that the u.s. shale boom that we're seeing in the united states will hopefully peter out if they can ride out the low oil prices. it is less economically viable for the u.s. hopefully the price will come back after 2017. that doesn't necessarily work for all of the opec members. saudi arabia has big deep pockets it can call upon to make up the difference in its budget. other members of opec, nigeria, russia, iran, the annual budgets on the higher oil prices. they will have a struggle

finally, you've got this opec meeting a couple days ago with non-opec countries.ittle bit of an expectation that maybe they would agree with a cut, but they didn't either. that doesn't bode well with people who think there is going to be a cut. >> we were seeing earlier some live pictures from opec. you are going to enter a room with all the opec ministers. you've already spoken to a lot of them. what is some of their reasoning behind not cutting supply? >> i think the idea is that while $75 a barrel is insurance for some opec countries, it is not injure us for all. these countries have $2 trillion worth of reserves. they don't really think they are responsible for the supply glut. it is not in their interest to blame themselves. they blame the shale producers. they think that while they can sustain the pain, the shale producers might not be able to. they could potentially take some of those guys out of the business, which would correct the price. what does this mean for oil prices? were $115 not too long ago. the last time the saudi's dueled with american produce

jonah where is opec heading on this?reporter: well, sami, at this moment, i don't know is the short answer. what i can tell you is that in the last few moments it appears the meeting going on in the opec headquarters over there has broken up, because all of a sudden a couple of the ministers made their way out and have driven away, one of them the saudi minister who started the day and ended the day with no comment. it raises the possibility that this meeting has broken up without a consensus, i'll have to get back to you with the details on that. but remember inside opec there was some division between those producers who wanted production levels to be cut so the price of oil would go up, and others who were quite happy to let levels stay where they were for fear of losing market share. it is not only the opec producers who are worried about the price of oil, however, non-opec producers, russia among them, very worried. >> reporter: opec's members have gathered in vienna. a 30% tumble in crude prices has gone from $110

everyone is looking at opec.t looks like the market is divided about what is going to happen there. damage has been done already. the sharp decline in the oil price is really undermining the fiscal picture and really undermining the gross picture. it is not looking good. >> do you think the oil price will continue falling further? are we in danger of a shock? saying, notxperts at all. we are not in for an oil shock. some are saying we could see $20 a barrel. >> the outlook is negative on oil price. beyond the tactical a discussion of opec, medium-term. >> do you buy anything in rush at the moment? >> it's tough. i with a the good news, if i want to spin a more positively, bleeding slowed. we are seeing a bit of fatigue kicking in. >> is it fatigue or is it just the russian central bank pouring money into it? >> the russian central bank is starting to do a good job at reassuring investors after really struggling at the beginning. i would say it is mostly technical factors. everyone has been super bearish on the ru

he gave us his assessment of why opec decided to leave its quotas unchanged. >> opec is trying to hold on to its position it has in the energy market because not cutting on output but rather holding onto the market share means that opec is willing to suffer from lower revenue, but does not want to give up market share, which may be difficult to gain back because of their producers are stepping in, like russia, so opec is holding onto the market share it has. and another point, if we talk about other producers, if the price stays low, that makes the fracking industry in the u.s. a different story the next couple of years. so if the price stays low, and producers may be pushed out of the market, i think that is in the sense of opec. >> thanks very much. unemployment in germany fell again in november it is now at its lowest level since 1991. >> the number of people out of work fell by 14,000, according to the federal labor office. labor market remains robust, despite other signs of the economy slowing down. germany has the lowest level of unemployment in the european union. investors cert

opec said, we are not going to do anything. let me get you the price, down 6.5%. 72.46 is the price of brent for a barrel. back to you. >> ok, oil prices front and center today. we have seen the price of crude fall to the lowest since 2010. opec refusing to cut production. put another way, saudi arabia blocking any idea of a cut. what has been the reaction from the other members? the fundamental picture is a global price war. shale oil production in the states is booming. they can't afford that, it becomes a price war. they have to keep production and prices down. it makes it harder for the u.s. to keep producing. >> three-decade high in the u.s.. >> only chinese demand slowing down across the economy. under pressure. within the 12 members of opec, saudi arabia, kuwait, qatar, than really need more strong foreign-exchange reserves. venezuela, nigeria and iran do needed. they rely heavily on crude exports to keep the money coming in. venezuela has the lowest level of foreign-exchange in 11 years. that is the problem they have. s

>> crude crushed, investors worry as opec won't agree to cut output. safeaccine is found to be in the drug company says it is the first step to making it widely available. exclusive, the senior foreign exchange and metals trader are said to be among 11 people facing a swift currency rigging investigation and google bashing is not on the germanaccording to one spokesperson as the parliament begins to reign in search engines. a warm welcome, i am anna edwards. it has just gone 6:00 here in london and let's start with the oil story, the long-awaited meeting is hours away in vienna. in the lead up to the meeting we have seen prices collapsed a four year lows. ryan has been on the ground speaking to oil ministers, good to see you this morning what can we expect? i think if you look at the , clearly investors are not expecting a supply cut. we heard the oil minister of saudi arabia saying the gulf countries have reached a butensus amongst themselves none of them have been pushing for a supply cut so the fact that some of them have a united position suggest t

the call on opec oil, the amount of oil opec must produce to have zero changes in price? currently, they are above that level for the fourth quarter by 700 barrels -- 700,000 barrels a day. one million barrels a day in the first quarter of next year? you need at least an initial million barrels a day cut so that markets are reassured they are acting, and potentially add to that. >> all right, thank you so much for all of that. harry t. to his friends. that's move on and find out what else is on our radar. the investigator who led the probe into the world cup said the decision is to keep russia and qatar as hosts. summary released yesterday includes incomplete and erroneous interpretations. earlier this month, emirates became the first major sponsor to drop fifa. twitter shares fell nearly 6% after standard & poor's gave the company a credit rating of double d-. that is three levels below investment grade. s&p said that twitter's financial risk was significant. twitter has been under pressure because of slowing user growth and management turnover. >> alibaba is trying to r

coming into yesterday's opec meeting, evil are asking the question, does opec matter anymore?s, and i afraid i am an old man, but the research shows that cartels are restricted commodity agreements that are successful and work well for three or four years and then fail and reform. i think we will see opec reform in two or three years. there will be one or two new members. russia will almost certainly join with them and find a way to cut production to bring prices back up. i would not be surprised if canadians also chip in. the members of opec do not have enough market share right now, and they are demonstrating that they can do it. i think two years from now, we will be looking at a new organization. that you really believe canada would join opec? and that the united states would tolerate it? canada'sif you look at behavior -- i was teaching at the university of calgary and till about 2011 -- potash producer in saskatchewan was blocked by the canadians. the canadians talk a good game, but this is very serious for them. i think whether they would , they wouldth opec if it looke

opec. oil ministers arrive in vienna before the opec meeting. we go to vienna. if you look at the bloomberg news story, saudi arabia's oil minister said crude prices will stabilize. the uae says opec will do what it takes to balance a market. predicting the group will reach consensus. there's a lot of tension and very little agreement. >> that's right. at the end of the day, i think it is fair to say it is the oil minister of saudi arabia within opec that really calls the shots. he said this morning after his daily speed walk to reporters he sees no need for saudi arabia to cut, the u.s. to cut or for anyone to cut because the market will stabilize. that is a big strike against those were expecting a hut. yesterday, we had a meeting of pretty eclectic group of countries there. they did not agree on a cut, either. the expectation going into that was maybe they would. aat is what we saw oil go to four-year low yesterday. if you had to bet right now, you would not want to be betting for a cut and for oil to go up. >> you mention russia. the energy minister is there

opec, the other big producing countries outside opec will suffer. many of them have little else to sustain their economy but oil, they've become used to years of high oil prices. they won't know where to turn. among the big losers, russia, nigeria, iran and venezuela. >> thank you very much. many people still remember those gas lines of the 1970's and odd-even gas rationing during the carter administration. many say it cost him his presidency. >> i'm not old enough to remember. >> it's history. >> let's look at other stories caught in our global net. the south china morning post said it has banned chinese shoppers from buying clothes, saying chinese not admitted, staff excluded. one worker called chinese customers too annoying. >> wow, tis the season. >> yeah. >> the world's most expensive drug is about to go on sale, $1.5 million per patient. the guardian saying it is the first mainstream drug to use gene therapy that treats a rare condition that clogs the blood with fat. only a few hundred people are thought to have the condition. fewer can afford

let's focus on opec.s are on the us a treeal capital vienna today, where the members of opec are arriving. we are talking about the organization of petroleum exporting countries. 12 nations including saudi arabia and its gulf maybe neighs well as iran and venezuela. and they are locked in a debate. do they slash oil production in an attempt to sore up those crude prices? crude is currently trading at this, $76 a barrel. that is down by around a third. in fact, it's down about 31% since the summer. what's behind the plunge? in a word, oversupply. there is simply too much oil around. demand for oil, we know it's weak in europe and china because of economic growth slowing down. and then the boom in the shale oil production, or fracking, as we kl it. especially in the united states, has meant a big rise in global supplies. that has undermined the position of opec, which used to control the market but now produces just a third of the world's oil. so is the price now out of their hands? let's go straight over t

opec is now under the 76-dollar marked. that's -- the markets are not feeling the cut in production is likely. on the stock market the cut in oil and gas prices -- paris had a late start to the day after some problems on the exchange. up .2 of 1%. and the -- >> and the european commission is going to give its verdict on the budget of france. any idea what they are going to say? >> reuters say that six countries will be told of their budget, eaui spending plans in march of next year. that's the very strong hint we're expecting from the european commission. we know france as ha deficit of 3.4% well above the eu limit of 3% but they wouldn't make any further cuts on the spending plan for next year. >> the european parliament voted in favor to break up google. it seeks the separation of the company's search engine from its other services. it will add pressure to the commission's long-running antitrust investigation into the search giant. the french drinks company is seen its profits drop. that's led to falling sales in china pa

we go into the opec meeting at the end of the month and everyone starts talking about opec needing tomething, do you think that is a nonevent? >> i think the market's consensus view is for no cut. even the fact that the brent market is outright short, if we had an announcement of no cut, you could see prices rally. we spent the last five minutes talking about production. let's talk about the currency market. how much does a strong dollar have to do with oil going as low as it has? it isectly, i would argue not that significant but the feedback loop through metals and other markets is significant. it helps to reinforce cost deflation. the stronger dollar begins to weaken the chilean peso which reduces the cost of producing copper. a stronger dollar also begins to weaken the australian dollar which reduces the cost of producing iron ore. now your input cost began to decline. it begins to feed back itself because the lower oil prices reduce the cost of producing iron and steel. thatve a reinforcing cycle reinforces weaker currencies and emerging markets plus a stronger dollar. >> i have

i think surprise, surprise, opec may not stem it. opec may decide to increase production to drive prices down, which would create more trouble for russia can be which will create more trouble for isis and create more trouble for our drillers here. they may try to create havoc throughout the world. at the end of the day, they were making billions of dollars when oil was $10. imagine what they're making at 65 and $70. david: by the way, we should mention we have a guest coming up towards the end of the show talking about their meeting that happens tomorrow. while we're eating turkey, teal be talking turkey at the opec meeting. liz: while you don't pick energy names, you pick names that could be beneficiary of extra money in people's pocket. in the last hour, dan, said is that his feeling up his suv tank cost $35 less this time around. that's money in pocket. why alibaba and google do you see them as beneficiaries? >> well, i think it's a longer term approach that we take to the markets. google has not participated here. that's why i br

>> to cut or not to cut, that is the question facing opec members.he 12 members of the oil cartel will gather in vienna on thursday and discuss cutting oil production at a time when prices have fullen more than 40% since yule july. the biggest numbers of opic -- opec is signaling there won't be one. the oil minister has said the market will stabilize itself. we have a closer look at opec and its weight in the global energy industry. >> the organization of petroleum exporting countries began in the 1960's as a way to control oil prices in countries but the commodity was a prime resource for citizens but the group's reach has become far wilder than that. they control 12 of the world's biggest exporters including saudi arabia venezuela, caw wait and iraq and control nearly 80% of the world's crude oil reserves and 40% of oil production so decisions of opec can be a -- can have a big impact. public in 1973 when the group put an embargo on oil. in the 1980's and 1990's, they diminished the supply. in 2001 oil prices rose once more in 2011 opec set product

tom, we'll talk about the opec meeting out on thursday.crude oil has lost 30% of its value since june to around $80 a barrel. do you think that puts more pressure on opec on the cartel to cut production? >> good morning, seema. good morning, wilfred. you know, i think they are probably going to even talk about increasing production. i think they want to drive prices lower. i think they want to create trouble with us doing our own drilling here. i think that they want to keep pressure on russia. so i wouldn't be surprised if they want to increase production here. i'm not looking from the cut, i'm looking to stay stagnant or to talk about increasing production to try to drive prices lower and put people out of business. >> so this is a positive thing for the u.s., right? because oil prices are only weak because of excess supply. therefore, this should be something that not only helps the consumer but pushes markets up further. >> you know, it's a very tricky question. as you look at the overall economy, we know that the stock market is at re

and this is the dilemma that opec countries face.ting production might mean losing market share to big producers outside of the group, and this is a group at the heart of deep regional rivals are, iran and iraq on one hand and big gulf producers have very little in common besides they produce oil. there is some that suggest that saudi arabia and non-opec member the united states have a common interest in keeping oil prices down because that hurts iran and russia. geopolitics play a major part. >> 15 corpses were abandoned, three were left outside of the entrance in a hospital. the staff say they have not been paid hazard fee for handling ebola victims for seven weeks. contraction ebola is extremely high during burial process. >>> five people were shot dead when a synagogue in west jerusalem were attacked by pro palestinians. they were killed by israeli police during the incident. andrew simmons has more now from west jerusalem. >> nadia did not have israeli citizenship but she has residency. and now she has to leave east jerusalem. i

and will the opec cartel cut output to boost prices?nd rolling over your 401(k) into your company's pension plan and having it guaranteed? should you do it. we'll talk about the risks and rewards you need to know about. in the meantime back to scott on the fast money halftime report. >> thanks. our traders blitz begins now. four trades on four stocks making news today. first up dsw is rallying on sales and earnings. >> there you go judge, getting foot loose on that one. as i said on the 13th of november. you buy this stock. it was under 31 bucks. by the time we did the final trade it was 31.53. today up over 36. nice trade. i got out today. >> i thought it was going to start to sell off as folks were watching you dance. >> you guy, none of you wanted to do that dance when they asked us to do it. only pete and i errwere brave enough. >> i wonder why. netflix. >> analyst position. put a hold on it. i'd love an opportunity to buy this but the sub numbers were disappointing. i don't think there is a rush but i do think come a year from now

they will meet. >> and we are talking between the opec and non-opec countries. everybody agrees that the price is no good. >> there is an upside -- every 10% drop in price has spurred .1 princes -- per 1% growth. there is also a competitive advantage in ignoring the concerns of struggling opec members. the u.s. set to become the will pose the biggest oil power is also at risk. the international energy agency says that if the price falls below $70 per barrel, u.s. domestic of shale gas becomes unprofitable. >> look at how oil is trading today on the market. the brent crude index, the normal index we used to regulate this, is up slightly in trading but still below the $79 mark. the lowest level in the past four years. on the stock market, european shares got a boost. the european central bank said the bank is repaired to buy government bonds next year if euro area needs more stimulus. not much for a big ride, but we still see markets turning into the green. let's move on with a look at today's other company news. shares in the british holiday firm thomas cook have

you have got to wipe out opec. >> the pressure on opec is enormous.e have enormous quantities of new supply coming on stream third we have mexico liberalizing their energy economy and lackluster demand. so what is opec going to do? they are notorious for cheating on each other. venezuela is running around the world. the foreign minister from venezuela is going to libya, to qatar, saying let's cut production. saudi arabia is saying, wait a minute, we are the only was likely to cut production and the rest of you will get a free ride along with us. hands's say they all hold and sing "frozen" songs together. do they still have the pricing power once they do that? >> i don't think they do. i think opec's power has diminished if not completely vanished. you look at the u.s. in the last few years, you look at the increased productivity in the u.s. oil market, or the u.s. drilling sector, and eia last month came up with some numbers well in average new north dakota is increasing productivity by 100 barrels of oil per month. -- per day, rather. this is an incr

i ask him about that statement from opec's secretary general. >> opec wants to see what is the new price. >> the new normal. >> it is no longer $100 per barrel. is it $80? is it 75? -- is it $75? we must wait and see. but there is another issue. opec did not take any decision because it was not in a position to take a decision. there was no unanimous agreement between the member states. opec must have a unanimous view to take any significant decision. it was not able to do so. they are trying to explain part of the story, but only part of it. >> saudi arabia is the main opponent against a production cut. why is that? what is the thinking? >> it is that you must find a new price for the world oil markets. we encourage demand. you encourage the supply of high cost oil. especially oil in the u.s. shale oil, also in canada. they are ready to defend their market share, especially in asia . they are no longer ready to defend price [indiscernible] it is not in accordance with the market realities of today. we talked about oil prices -- >> we've talked about oil prices. the american markets are

non opec agreement. back to the meeting. we've got 24 hours before the meeting. there are big questions about two things. one can opec cut that official level of 30 million barrels a day and put a floor under the enormous price declines in crude and wti over the last six months? or is there going to be no agreement and keep prices continuing on that downward trajectory. lots of questions still. >> thanks steve. we appreciate your reporting and we'll stay tuned to what happened in vienna this week. meanwhile, solar energy might be getting a facelift. morgan brennan is 46 floors above the street of manhattan with that story. >> reporter: hey kayla so it is cities of the future, buildings generate more and more of that you are power from alternative sources like this solar installation here in manhattan. but scientists are looking to take this much much further. when it comes to developing oil alternatives for the future, mit is on the cutting edge. >> so build yourself, might start here. >> researchers are

it is outstripping demand. >> you think there will be a contentious opec meeting. >> i think all opeceetings are contentious. we are talking about a number of countries that culturally, geographically, economically, there is always a concern. long bond is trading $.55 on the dollar. threat ofn severe default. they are going to have to pump to get income into the door. -- there ishey are going to be that discrepancy between the haves and the have a knots. >> where is the bottom for oil? you can never say how low any commodity can go or how high. i think we are at the bottom. we are at that mid $75 level. youhing below $70, then really begin to impact the economics of north america in production. then producers will begin to hold back barrels from the market. that there is no agreement on any sort of cut by opec. this is a broader sign of not dissension within the cartel, but the cartel's concern with regard to global economic health. >> thank you so much for joining us. primer, howarda ward will join us in the next hour. stay with us. "bloomberg surveillance." good morning. ♪ >> good m

of opec account for more than a third of global oil trucks, so what opec does has a big effect on the oil price. the question at this meeting in vienna is will they decide to cut production in order to try and push the current low price of oil back up. >> here's the problem they face. globally, demand is down, with slowing growth, particularly in china and europe. supply is up with the united states emerging as a major producer of shale oil. this is the dilemma opec countries face, cutting production might mean losing market share to big producers outside the group and this is a group at the heart of deep regional rivalries, iran and iraq and the big gulf producers have very little in common besides the fact that they produce oil. there are some who suggest that key opec member saudi arabia and the united states have a common interest in keeping oil prices down, because that hurts iran and russia. as ever, with oil, geopolitics play a major part. >> still ahead, adventures, people from dozens of countries can visit more easily, but will they? >> we'll meet patients treated by the worl

i remember people saying opec is done for. it is a matter of putting together enough pain on the part of suppliers until they become. the difference is the american oil production. what do you expect in terms of shutting in on american oil and what does it take before the oil market finds stability? >> i think it can be quite some period of time before the production here in the united states is curtailed. it takes so long to bring new product on to put new pipe in the ground to put new drills down. it takes a period of time. banks have lent money on new drilling. you probably will have an expansion of crude production here in the united states for at least another six months or nine months and then we will probably see a slowing of increase in the production in the united states. we will surpass saudi arabia. it is a fact. and it will probably take $55, $50 crude oil to really stop and curtail the actual amount of production here in the united states. that will go on for quite some period of time. i think we will be surprised

whether opec will cut production and stem the bleeding.ning us now is dennis, heedir and publisher. good to have you with us. >> good to be had, always. >> what do you think happens on the 27th? >> opec will announce a cut in production. there's no question. they have no choice. they have to put the best foot forward. the question will be what will they do when they have made the announcement. and the answer is opec lies. they have always lied. all the member haves always lied. always agreed to cut production and rarely followed through. if you are iran, you have a real problem. you have a problem with cash flow. you have made promises to the citizens in the form of subsidies and education and health care. all sorts of promises for social benefits that need $130 per barrel crude oil. doesn't matter what iran's production costs are. they're much below the current price of crude oil. but their cash flow is so high. so what happens when you're iran? you promise a production cut, but for all intents and purposes, increase production, not decre

the 12 member nation of opec made the decision on thursday. they agreed to keep their daily oil output target at 30 million barrels. some appealed if for a reduction to curb a further drop in price is. the appeals were overridden. crude prices have um tumabled more than 30% in the past six months partly due to u.s. shale output. at the gathering, saudi arabia argued that opec does not need to slash production target as current price fluctuations are only short-term ones. other delegations claimed crude prices will rebound as the recovery drives up demand for crude. in after hours trading in new york, futures prices fell below $70 a barrel for the first time in four and a half years after the opec decision. out of speculation that oil supply will be excessive. now, analysts are wondering where prices are headed. for more, let's go to ai. >> we spoke to a japanese analyst and he said the excess supply of oil could keep prices low for about six months, but after that, he said prices may start picking up. >> if it remains, it will have a negative

the way opec would have come in and stabilized these prices is not here. it is very uncertain where you're getting this. for us to see another $10 lower, it is reasonable. you're starting to see some upline. you start to get -- from here. it doesn't feel like we are at the bottom yet. >> 22 pergs in 2012, 33% in 2013. oil is a volatility. are we overreacting a little bit. >> i think overall, markets are in a certain state and i think it's uncertain for many markets than we've seen in the last two years. and i think the issue is you've seen oil prices off, but what are they telling us? are they telling us there is a lack of demand in the world or are they just selling us there's enough supply out there, this is going to be a -- for consumers. in which case you would expect half a percentage point being added to the gdp and the u.s. and uk. >> wti crude trading below $80 a barrel. why haven't we seen the equity market respond in the price drop we're seeing in oil? >> the fed has tapered in the asset purchases. we know the ecb is just getting started. there i

let's check on crude down ahead of opec meeting. if we settle lower today it will be lowest since september 2010. let's go to bertha coombs live. >> we have been living and dying by those headlines coming out of vienna. yesterday a little bit of hope that maybe some of the non-opec members would help push them towards a cut. now minister from saudi arabia saying members have come to a consensus but won't say what that is. the expectation is that opec will stand. the fact is they are not producing to the quota now. so some say maybe a cut won't really be that useful if people continue to cheat. that said we have seen oil prices actually move up even though we saw a surprise increase in terms of u.s. stock piles today the eia reporting that we saw stockpiles up 1.9 million barrels. the expectation had been for a fall. we had a preview of that from the industry last night. we saw a bigger draw down of gasoline. that has helped the products a bit. as far as natural gas prices are higher despite a bigger than expected injection. if you h

>> opec the u.s. ore this production growth is here to stay.l prices l go, it does not mean that technology is going to stand still. technology will continue to bring costs down and infrastructure will improve. lift the oil export ban, opec will be in deeper trouble. a strategist from oppenheimer funds. what is the next big thing and technology that could change the way we live and work? we asked benedict evans. a shocking big number. new data on how global warming is lighting up the sky. ♪ >> 50%. that is the increase we will see in lightning strikes i the end of the century. this is because of global warming. ofentists at the university california at berkeley say that waterg will mean more vapor in the atmosphere. one impact is more wildfires, half of those are caused by lightning. frightening. we have got a rare glimpse into pimco's compensation. also, ibm ceo jimmy remarried -- jeannie ramadi is making big news. ♪ beef lovers are not the only ones with sticker shock. it means a tighter supply of hides. what is the impact on the luxury indus

is opec irrelevant now? go to cnbc.com/vote. >>> and as oil dives, transportation stocks are on a tear. the dow transports hitting new highs, up 20% so far this year. the stocks that are driving that sector, we will identify them and tell you whether they may still have some value in them. >>> 2014, of course, marks cnbc's 25th anniversary. earlier this year, we revealed our list of the 25 rebels, icons and leaders who had the greatest impact on the world of business, commerce and maybe even culture over the past quarter century. now we're going to turn to the future with our list of 100 who we say will have the biggest influence over the next 25 years. first to one of the great influencers, sue at the nyse. >> oh, thank you, ty. all right. well, we have record intraday highs for the dow jones industrial average. the dow transports and the s&p 500. so it's starting out to be a very strong day. but oil is really the thorn in the side of the market. it continues to be under pressure. right now we have west tex

it doesn't matter what the wording is out of opec. they are not going to cut enough to make a difference or impact in the price. so for the short-term you are going to see lot of the energy names, the whole energy complex is going to be taken down. especially the upstream names. e and p. wll or continental resources. those are the names that get taken down at first blush. but you have to guess, are energy names going to be the beta chase into year sneend? and this meeting is a fork in the road for the entire market. if they don't cut effectively, the saudis want to gain that market share. so they are giving up price to get that longer term market share bet. oil is going much lower. >> and with that signal, it being a short for you into the end of the year? >> i would think you have to really play this smart. but for me i think i'm going to reverse on that beta chase into year end. you might get a little -- you know, friday is going to be a huge day. people are going to come in and probably sell energy. after that you might get a pop n

together with non-opec countries like russia amongst the non-opec producers that control the remaining% agreeing as well. that is a lot of people to agree. there's a lot of pain. oil prices climbing over the past three days and giving up some of the games. back over that it is 80 bucks, all bets are off and maybe opec's will swing in the favor of the direction of let's wait and see where we are six months from now. it shows oil bouncing up and below $80. that will keep them concerned the price is not high enough for their interest. >> uighur from the russian finance minister that in the economy was losing 90 alien dollars-wonder the dollars a year. billion-$100 billion a year. oil --s $123 per barrel to break even. >> ryan chilcote will be covering it all week for us. we spoke to the cofounder of .ide science -- rocket an interesting conversation to come. 8:37 in london. ♪ >> i am anna edwards. the companies on the move. aviva said today are in talks to buy friends. friends life said is willing to recommend the key terms of the proposal for shareholder. they were only 22% of the combin

you already cited what's going on with opec and the swiss referendum and opec is a lynchpin because dependingn what they do or do not make, kelly, that makes a big difference for the trading friday, and of course, well into next week, probably for the rest of the year. >> mary? >> i'm just wondering, seems like we have a sense of what they will do at this point. they've certainly telegraphed it enough. >> what do you think that sense is? >> maybe a modest production cut at this point. what could they do other than that that would be a big surprise to the market? >> kenny, what happens if they do nothing, would that surprise the market at this point and oil drop by a couple of bucks? >> i think it goes lower anyway. the million production, million barrel production guide is insignificant with the bigger picture and i think the market is expecting that. oil's prepared to go lower and support at the $70 level, though. i don't think it's going to $65 or $60 a barrel but doing nothing then the movers just swifter. >> before the question of where oil might be going, on the opec thing for a second,