ecuador, one of the opec members s not in great financial you shape. nigeria is constantly battling fiscal problems inside the country. venezuela also in perilous economic state. is it difficult to say we're just going defer this income for now and hopefully make it back down the road? >> well, i disagree. i think that what is not well understood throughout opec is just how resilient the u.s. production surge really is. in my opinion had opec made some production cuts over time all that would have done is encourage more and more drilling in the united states and other parts of north america. the shale boom is becoming more and more productive. companies are able to produce more ail from the same well using new and better processes. more sand, different kinds of fracking fluids, and so it's going to be very hard for opec to really compete against and shut in the u.s. production, and the markets, you know, experts and traders in the market understand that, and that's why prices keep falling. people keep revising their ideas of how low a price will cause

and i think it would be pretty hard for opec to knockout that production and since everybody in opecancial pressures, you know, what is the points of cutting production if it means that you are just going to have prices stay low and the united states is going to get more of the market share. i think that opec is really painted itself in a corner by holding prices so high for so long and creating this drag on the global economy that it's going to be very hard for the organization to dig itself out. >> but conversely, and you heard a model where if the price had gone up it would have encouraged more american production. is it discouraging more american production when the price comes down? >> absolutely right. it's changed the financial equation for oil extraction. and in this business of oil, it's very simple, when oil prices go this low, right, it drives the weakest out of the market. and then the middle group, puts everything on hold. what we call mothball the production. and saudi arabia really is the only country out there that can withstand this. they have $7 billion in reserves.

speaking earlier about opec and that meeting thanksgiving, opec resisting calls from some of its membersreduce its production target, the target 30 million barrels per day. >> well, it was obviously a bearish signal. there is overhang. opec could have done one of two things. they could have gotten rid of that overhang, cutting or looking at times they would cut in the future, or not, and they were pretty clear. saudi arabia, in particular, has no interest in cutting and has no plans to do so. >> opec wants to reduce the global oil glut. is the market up to the task? >> i think what they mean by that is that they want to see what effects this lower price has on the demands, because a lot has changed in the oil balance really in the last five years, so it is really hard to compare what is going on now compared to historically because we do not have the data points. what does a lower price for some period of time due to the production growth we have seen in the u.s.? what does it do to some of the opec numbers and in terms of their future compliance? do for economic growth? >> how much does

opec is a 54-year-old cartel that regulates the volume of opec oil output. which in turn makes oil pricing go up and go down. the basic intent of this fluctuation is to maximize the economic interests of opec members. but last week, opec decided not to reduce oil output in response to plummeting oil prices. here's how secretary-general plains opec's -- explains opec's decision. >> i think we have to wait and see and review the market very carefully and maybe we need to wait for some time to really have the real trend. is it a blip or fundamental changes? >> question, what's behind opec's decision to keep its current oil production at the levels they now are? >> the saudis are the man in charge. it's killing venezuela, russia, iran. iran, the saudis want to bring them down. if they let the price drop to, say, $60 a barrel, that makes shale oil in the united states, which the saudis are terrified of, that makes shale oil a noneconomic investment. and suddenly they're not going to cut production because they know the other opec countries will sneak in, and take

necessarilyy is not coming from opec anymore, but outside opec companies, notably, the u.s.ys 2015 demand for its crude oil will be the weakest in 12 years. you talked about tepid demand. this is the weakest demand in 12 years, collapsing demand for opec's oil. opec lowering projection for 2015 by about 300,000 barrels per day. about one point finally in a day less than what they pumped last -- >> i'm surprised to hear opec releasing joint press releases. >> it is more saudi arabia imposing its will upon everyone else. >> we can address this with michael spence, opec raises next year's non-opec supply. >> that would be the united states, too. the u.s. in 2015, one million new barrels a day. >> scarlet, please. >> francisco blanche -- >> made a big splash yesterday. >> he said opec has dissolved as a cartel, in my opinion. do you agree with that, michael spence? that opec -- >> are they still do marginal decider of the price of our oil? >> the swing barrel. >> i think they are. it looks for the moment like that decided not to do it in the way they did in the past. >> again, t

so, at the end of the day, this is how desperate opec is right now. >> fight for survival for opec but for us, consumers are saving a billion dollars for every penny gas prices fall. that is great news for a beleaguered american consumer who hasn't had a raise in five or six years. phil, thanks for coming on. >> thanks, gerri. gerri: we want to know what you think. here is our question tonight. does the u.s. have opec over a barrel? log on to gerriwillis.com. vote on the right-hand side of the screen. i will share results at the end of tonight's show. >> >> you know it is one of the busiest shipping days of the year, the holidays. you have to get presents out. 10 days left before christmas, delivery giants handle a onslaught of packages. last year a late surge in web buying blindsided shippers causing millions of gifts not to arrive on time. you remember pictures of the gifts falling through the hedge? will they deliver this time around? we're joined by the top retail analyst at pricewaterhousecoopers and strategy and unit. thanks for coming on the show tonight. so are these shippers g

so now, what about opec and russia? russia will not join opec. opec has invited russia. russia politely declined. russia, when convenient and beneficial to russia will cooperate with opec. what does this all mean? in the last 35 years, opec is cut oil production 11 times during my lifetime and on average reader says reduction by about 1.25 million barrels per reduction. the last time opec cut production was in 2009. opec invited russia to the meetings. russia went to the meetings. opec shared with russia what they wanted to do when opec decided they were going to cut production, making the assumption that russia agreed with opec to cut production. but russia do? the increase production, profited the situation and expanded the market share. all pet lost russia one. today on november 27th, opec is meeting again and it's not just russia opec is at war with. it's also the ratio sector. the sector is now become a swing producer of the international arena. now will discuss without his imports in any day. what about the putin edition of gas? when he came to oil, it is a dream c

otherwise, opec, they no longer control the market.here is too much supply, especially wti oil in the u.s., for opec to know they can affect that. they know that prices are on the way down. let's not shoot ourselves in the foot. we are selling at not only a lower price, but less amount. also, it is a waiting game. they know that as long as they can continue this expanded period of low prices, the u.s. will see the supply responding to that. it becomes not very productive to keep pumping those 1600 oil rigs. they can wait a little bit and the stronger the position goes as they wait, and at the same time they recognize that they are no longer -- >> i'm looking at brand. a little bit of a rebound. below $60.irmly there is a huge flashing light in commodity markets. we've seen a stunning collapse in the price of oil. there isn't a huge red flashing light everywhere. there is concern about how the dominoes fall from commodities, to credit, to equities. is that a concern you share? >> it is not. when you look at the net effect of sustained l

opec production is 30.5 million barrels per day. opec consumption expected for 2015 is 28.9 million a day. that means that opec is pumping 1.6 million more barrels per day than is being consumed. that says it all. >> well, that why i try to have production cuts over the last couple of weeks. it didn't work because they are all exceeding their quota. they are producing more than what they're supposed to. and at the end of the day, if the saudis don't cut, no other members in opec will cut. even if they do, they are not going to amount to much. in, to balance that kind of market we need to cut oil production by 2 to 3 million barrels. the fact is nobody is going to be able to do that because if saudi arabia does not carry the burden of production cuts it is no-go. we expect crude oil prices to remain low for a lot longer than many people think. that is what you see in the equity market. every time they recover, they tumble again, like what happened last couple days. lori: fadel. lori rothman here. when you say you expect oil prices to

i am not just saying opec producers, but non-opec ones as well.pec producers at the moment. u.s. producers, the last figures showed that producers in the u.s. are producing oil at the highest rate in three decades. we will have to wait until wednesday to see the latest on that front. the latest data from a drilling company shows that drillers are not out of their rigs. yesterday, we saw the most rigs idle since 2012. that is two years. it --ount of rigs running in the u.s. is the lowest since june. $60 a barrel. some are forecasting pain. it seems to be taking effect at the moment. >> thank you. ben with the latest on the oil markets. the big story this morning is the siege taking place in the central business district of sydney at the moment. lindt cafe. 40 hostages could be being held by -- well, no idea of how many there.could be in we also way for tony abbott to country andstralian the wider world on what is happening. ♪ >> straight to canberra, where the time is 12:52. alreadyott has described the situation in downtown sydney as being deeply

let's look at what falling oil prices mean for opec. the 12-member states supply about 4thed percents of the world's oil and they would like to maintain that market share while countries like you had e arabia can sgur prices. nigeria and venzuela could see unrest and a real decline in their economies. meanwhile, non-opec members are feeling the pain, falling oil prices have hit the russian rubal's values. an economics lecturer at the university of the west of england explains why opec some concerned about falling oil prices. >> there are increasing number of questions around why opec is choosing to maintain output even as prices continue to slide. in particular, why saudi arabia is leading this decision. a number of theories have been raised. for example, somehow speculating whether this is an attempt to hurt iran or russia, for example, i think more concretely, what's clear is that there is increasing concern in the gulf about the rising levels of u.s. output from shale gas and concern that they will increasingly lose market share in t

opec's is the hope from perspective. a lot of that referring to these shale producers in north america squeezing oil from rocks and shale formations. some producers are saying, the drop in the cost of equipment and better technology is more than offsetting the drop in oil prices. although many of them have to borrow a lot of money to invest, they may not be as impacted. it may take a lot more to shake them out of the market than some of the more traditional producers would hope. >> elliott, thanks a lot. in an exclusive interview with bloomberg, lithuania's finance minister says international markets already see his country as part of the eurozone. lithuania officially joins the zone at the start of january. he says his country's economy is ready for the euro. isi think the problem already prepared. and not only our economy considers itself already one wep from the eurozone, but have seen by the international markets as already being in the eurozone. >> let's switch gears and get to the aviation industry. after unexpecte

opec won't budge on cutting oil output. how long can the wealthy members survive with the rock-bottom prices? the winners and the losers and how long the waiting game less. all that when we come back. ♪ >> welcome back. you are watching "the pulse." we are back with the oil analyst at barclays to discuss the price of late. the oil price clearly is going to have an impact across a range of industries. i'm interested to hear what qatar airways wants talking about. they still see a long-term story which requires more efficiency. at the moment, we've seen a significant collapse in oil prices. do we get back, and when do we get back, to the prices that existed before then? >> i agree with a long-term view that qatar airways mentioned. area, we cannot have $60 barrel for oil. the supply side cannot sustain demand growth at that point. that is where we could possibly see an undershooting of below $60 a barrel in the first half of next year. >> it is interesting that all the gcc guys are talking. normally, they are shaking. >> befo

>> i think that opec, the gulf countries in opec have a lot else at stake in their relationship with the united states. i don't think it is directly aimed at them. i think what has happened by their saying let the market take care of this they said the high cost oil, the oil with a lot of debt is at risk. i think the other thing really on their minds are their neighbors, iran, shiite controlled areas. we are not going to sit back and let others take our market share. >> is the big loser in all of this potentially canada? i know we are here in the bakken and there is damage done in the permian basins of texas. when i look at the producers in fort mcmurray, canada their cost of production may be higher than it is here. could canada be the ultimate loser in all of this? >> canada could be certainly one of the losers. as you pointed out, brian, that the bakken, the eagle, parts of the permian they are going to continue. high cost oil, new facilities in canada are at risk. you know when we looked at our numbers we see this year this coming year 2015 canadian oil production going up by abo

opec decided not to cut supply to raise prices. >> opec does not specify a price but we always try to reach a fair price for both consumer and supplier. >> but there's more than markets forces at work here. saudi arabia has a history of cutting or boosting oil production to cut its long term goals. sometimes it's market share, sometimes price stability and sometimes it means being willing to lose a few dollars to keep iran in check. saudis can do this, iran buying necessary equipment to boost output. now low oil prices are forcing iran's hand, making sanctions release all more important. giving iranian government less money to support its allies, like syrian president bashar al-assad and houthi rebels in yemen. russia, moscow is not a member of opec but oil accounts for 75% of russia's exports. opposed to supporting ukrainian separatists. american oil production is at a 30 year high, fracking is much more expensive than drilling and higher oil prices will be needed to sustain the industry. >> but also to show the united states that shale production has no immediate future. by keeping

why doesn't opec cut production? >> there are increasing questions around why opec continues to produce around this slide. a number of theories have been raised. for example, some have speculated whether this is an attempt to hurt iran or russia, for example. i think more concretely what is clear there is increasing concern in the gulf about the rising levels of u.s. output from shale gas and concern that they will increasingly lose market share in the united states will become oil independent. >> so would you say from opec's perspective the u.s. shale boom is perhaps more of a consideration, more of a priority in their decision making then, say, the political consideration regarding around iran, and thou this could hurt iran politically and economically? >> i think there are much more economic reasons why opec would be concerned or gulf states would be concerned about north american oil production. with global demand falling at the same time supply rising at a high rate not only because of oil production but other c

there's speculation opec's biggest members will defend market share. west texas intermediate futures fell in new york. they have plunged 10% this week. oil headed for its 10th weekly drop sense october after opec decided against reducing output. >> the director of the c.i.a. made a rare move. he held a press conference

i don't think opec is relevant anymore.ither the saudi's have thrown out some of the weaker members and now they have to fend for themselves. we see that in venezuela and nigeria. i'm saying the cartel is pretty much broken. it is only the saudi's that matter at this stage which is why we hyperventilate every time they mention something. what he says ultimately impacts the market any time they say something. kuwait and the united arab emirates are the other two countries that have acted in tandem the last 10 years. have remained tightly met and everyone else is doing their own thing so the cartel is broken. the saudi's still have a strong influence. the world's largest producer, in 2015, does opec hold together? >> i think it's great to get together in vienna. i don't think they will give up on that. i don't think it will be all that relevant. this is a poker game of high-stakes. arabia, youaudi want to induce enough fear on the shale producers and every one else that you're not going to cut. they want to be taken seriously

no cooperation between opec and non-opec would be worth anything unless the united states were to participate. that isn't going to happen either because it's an open economy, lots of individual players, that will not happen. but opec will not cut its production. it will not meet again. and the reasons for that go back into the midst of time. and i promise this is brief. the saudis remember what happened in 1986 when the oil price collapsed. opec met four times in 1986 as successfully cutting production with a floor under the price. all that achieved was the high cost producers at the time, they got a free pass. fast forward to 2014, if opec were to cut production dramatically, increase the price, it puts the floor under the high cost producers in the united states. so the uae minister and other opec ministers say, why should we do this? >> can the oil price continue this rally? if the exporter is not going to cut production? >> i hesitate to call it a rally but i take your point. it's a very modest rebound. saudi arabia has made its stance absolutely clear. it is not cutting production. so if

we are competing against opec. opec has declared war, especially saudi arabia on the u.s. 67 to $70 a barrel, which is where we are now, we will see a pullback in rig activity. it will start probably january, february and march next year. probably see a 15% to 20% pullback in activity. even at $70 a barrel, this country can still grow. our hands are tied behind our back. we're not competing pricewise with opec. we van export ban on crude oil. we haven't been goetting the right world price. we can compete as much as ever with opec. >> a lot of other ceos are calling for that ban to be lifted. in this world in which the export ban is in place, how does this change the way you plan for the year? we've got an expansion planned which could cost up to $2 billion. at what price point do you say, you know what? we may have to re-evaluate our capacity expansion? >> yes, after going through several donturns over the last 35 years of my career, we're probably well positioned better than any oil and gas independent in this country. right now we have $1.5 billion of cash on the balance

we are going to talk about opec and how it is playing the blame game. saudi arabia refusing to relinquish market share. what will it mean for oil in 2015? we will talk about that when "on the move" returns. remember, you can follow us on twitter. ♪ >> welcome back. i'm guy johnson in london. this is "on the move." let's take a look at how we are performing today. generally, reasonably well. we are up by 0.7%, 0.8% this morning. we've got a fairly decent session overnight from asia. a decent close in the united states. we are pricing that in this morning. let's talk about oil. prices this morning extending their best today rally in two years. this after saudi arabia's oil minister said he was confident that crude prices will make a comeback. it is just a question of duration. down nearly 50% from this year's five. you get a very small blip at the end. elliott gotkine has more. what do we get out of this abu dhabi conference? what did they say? >> this was a meeting of oil ministers taking place in abu dhabi, and the ministers have been justifying their r

opec is down from 35% today.icing and the availability of basic data from eia created by congress in 1977 have all brought greater transparency to the oil markets. as described in my written statement, eia is actively pursuing a number of important initiatives relating to the timeliness and detail of oil market data. i would like to thank you for the opportunity to testify here today and i hope to be able to answer your questions. thank you. >> thank you, very much. and our next witness is mr. lou bellorisi, you're recognized for five minutes. >> thank you very much. >> be sure to turn your microphone on. >> yes, i think we have a next slide. what i would like to do is put a little bit of this in context. the first thing we all talk about is what is energy security? we tend to think of concentration, low cost reserves in parts of the world which tend to provide a risk to the u.s. one, they can restrict out put and charge higher prices that would prevail a more competitive environment. and two, some of these guys

but what helped opec was as mr. sieminski note from was the surging demand a worldwide not only in the united states, but in western europe and japan which allowed opec to every time a contract was up for renegotiation, demand further upward priced revisions. mr. chairman, it's worth noting the global market conditions in the early '70s could not have been more different than they are today as word from congressman burton. demand for oil throughout the induction was world of skyrocketing. in the united states domestic production to peak in 1970 leading a cabinet task force to recommend a gradual elimination of the quotas under the mandatory oil import program. in retrospect given the change, circumstances confronting the u.s. is remarkable that this recommendation did not receive more salience from the congress, despite the fact that u.s. oil consumption was skyrocketing, domestic production was peaking, and oil imports were up to nearly 30% of u.s. consumption on the eve of the oil embargo. the u.s. could not have

opec cut its demand forecast. there was a look at the dow jones industrial average at this hour, down 1.25%. showing we are down 1.25%. the nasdaq composite index is down nearly 1.25%. oil prices keep falling and opec made it clear that demand won't be rising anytime soon. cartel could its forecast for 2015 to the lowest level in 12 years. says the sharpt fall in oil prices is the result of what he calls treachery. an apparent reference to regional rival, saudi arabia, does opposed proposed production cuts to lift prices. earnings may rise 25% next year. that is according to the international air transport association. the main reason, stronger economy and cheaper fuel. >> we see oil prices coming down next year. saving the industry a certain amount of money. as oil prices come down, so will average fares. relatively good global economic growth. that is the main driver of the improved results. >> a copy when special investigator says senior u.s. officials who authorized and carried out torture must be prosecuted.

be able to outlast opec's squeeze play? larry is with us.k also with tracy byrnes and is a breen that schaefer. larry, first to you. you doubt whether or not opec is trying to squeeze u.s. producers. i think it is clear they are but do you think u.s. producers can outlast what is going on, these low prices? >> absolutely. right now the technological advantages or advances in the united states. we don't even know what the break even points are for u.s., hearing stories, 50, 60, down to $30 a barrel. we'll see less production, but so much is in the pipeline. combined that so much is hedged i think we're in absolutely fine shape without any problems short term. david: that is good to know. to larry's point, tracy, in north dakota, we're getting word, it is so cheap to get oil out of the ground, out of shale oil, even if boil prices go down to $40 a barrel, they still make a $10 profit. >> i don't think, larry made the point that opec, it is in their best interest to make this work. they don't want us out of this game, even though as your skepti

him reeling from opec positive vision not to cut production -- reelinget is still from the opec'

what about opec and russia? russia will not join opec.opec has invited russia and beneficial to russia will cooperate with opec. but what does this mean? i last 35 years opec has cut production 11 times during my lifetime and on average for it reduces production by 1.25 million barrels per reduction. opec invited russia and russia went to the meetings. opec shared with russia what they wanted to do and opec decided they would cut production making the assumption that russia agreed to cut production. russia increase production profited from the situation and expanded the market share. opec lost in russia one. today on november 27 opec is meeting again and it's not just russia that opec is at war with. it's also the u.s. shale sector. the u.s. shale sector has become a swing producer and international markets so we will discuss why that's important in a bit. what about the putinization of gas? if you thought russia had a name i came to oil it's a dream come true when it comes to natural gas. a lot of people in the west on how the russians 2

so i think the approach by opec is a very wise one. >> exporters from opec represent only 40% of the world's oil production. saudi arabia and united arab emirates ministers, say they lack coordination and are acting irresponsibly. two of the biggest oil producers are not members of opec, the united states and russia. but a refusal of opec to drop its supply of around 30 million barrels a day could hurt other economies, even those in the block. iraq is one that's been hit hard, trying to fight against the islamic state of iraq and the levant. >> when you reduce your income it will affect, this is negative side of it. but the positive side of it that we are reducing a lot of unnecessary costs. >> another positive says abdul mahdi, following the kurdish reefnlg government. >> so kirkuk is beining functioning once again. >> millions in energy cost because diesel and oil is cheaper to import. >> we saved for the last four months is about 45 million. >> but he warns it is only a short term gain, he's worried the long term foreign investment in his country by the big producers like saudi an

maybe opec will at some point decide to reduce production.ou could have difficulties in russia even. i mean, there's lots of things that could make prices go up. prices could come down, too. what really triggered prices coming down i believe over the course of the last few months was a combination of the unexpected recovery of oil production in libya, at the same time that the economy in china was slowing down and demand forecasts began to recede. in that background of increasing u.s. oil production, the combination of those things was a tipping point and changed everybody's mind about what the future looked like. >> mr. pugliaresi -- >> one of the things i would encourage the members to do is look at this through a north american lens. when you put canada in the mix -- >> absolutely. >> we really don't like this self-sufficiency approach to thinking about energy security. we really say, look, we want this platform to be productive. u.s., canada, large -- >> and mexico. let's think of it as a north american dependence. >> it may be efficient.

outside opec, that is another important factor.s secretary of energy coming towards opec, negotiating, even lobbying openly. so it is really who blinks first. some people say a conspiracy theory. that the whole thing by washington is to put pressure on russia and make a financial problem even greater and greater. that, i'm no expert, but some people say that may be the reason. and as to when the two sides would reach an agreement, the two producers, if there is that scenario, i really can't say. but that is a possibility that the news use are portraying. >> let me ask you to speculate just for a bit how -- politically how low can the oil price go before we start to see real instabl in some of these countries? >> we already are feeling instability. i think a price of $60, already at the bottom. they experience that any of it can be repeated. all these countries managed to live with $10 a barrel in 1998-1999 for almost 18 months when they was going on. differently for balancing their budget and so on. it all depends on the conditions

i think approach by opec is a very wise one. >> exporters from opec represent only around 40% of the world's oil production. saudi and united arab emirates ministers blame outside for the slump, they lack coordination and are acting irresponsibly. not members of opec, the united states and russia. but a refusal of opec to drop its current supply of 30 million barrels a day could hurt economy even those inside the block. iraq is among those who have been hit hard, funding its war against islamic state of iraq and the levant. it's forced to become more efficient. >> when you reduce your income it will effect. this is the negative side of it, but the positive side of it that we are reducing a lot of unnecessary soft. >> reporter: another positive -- unnecessary costs. >> so kirkuk is functioning once again. >> reporter: but not everyone suffering from the cut in oil prices. jordan says it's saving millions in energy cost because diesel and oil is cheaper to import. >> we saved i think for the last four months about 45 million jds. >> but he warns it's only ashort term gain, the long ter

opec says its policy will not change. a gallon dropped well under $2. the president will sign a new government spending bill, a prominent presidential contender says he will release hundreds of thousands of e-mails. on the second anniversary of shooting in newtown the victims prepare to sue a gun maker. and the coffee pioneers of california. >> people tell me you are crazy for growing coffee in california? >> yesterday someone told me that. captioning sponsored by cbs this is the "cbs evening news" >> glor: hi everyone, i am jeff glor and this is our western edition. oil and gas prices are down big and right now there is no up. opec, the organization of petroleum exporting countries said today it has no set target. the price of oil is down from $108 a barrel in june to below 58 friday, and opec says even if the price goes to 40 they will not change production levels. what that means for gas prices, likely a similar slide. the cost of a gallon is already down more than $1 since june. we have two reports starting with jericka duncan. >> reporter: national

opec, the organization of petroleum exporting countries said today it has no set target. the price of oil is down from $108 a barrel in june to 58 today, and opec says even if the price goes to 40 they will not change production levels. what that means for gas prices, likely a similar slide. the cost of a gallon is already down more than $1 since june. we have two reports starting with jericka duncan. >> reporter: nationally the average for a gallon of regular gas is $2.56. down from more than $4 average in july of 2008 when prices hit an all-time high. and places like california where drivers typically pay more for gas, the current average per gallon is $2.88, that is down from $3.59 in 2013. >> denton monitors the i have for oil price service. >> how low do you think gas prices will actually go? >> i think by christmastime we will be below $2.50, it will be cheapest christmas since 2008 but since there prices will continue to drop, already a dozen states that have a sub $2 price point and there is going to be more to follow. >> triple a estimates us households saving $1

. >> ken opec survive this? opec survive this? changing a lot and there was dissent at the last meeting. countries,der they want toan, cut to the target to stimulate prices. you have larger producers like saudi arabia, kuwait, and the arab emirates saying, we are ready for the price war. they are going to ride it out. we will see how it emerges. the bigger members are ready for the price war and are going to ride it out. >> thanks for that. let's take a look at the impact on the slumping oil price. >> you can see the airlines. they are falling across asia. across the board, up 4%. a gapore airlines, up by percent. ana is up 4.2%. you have korean air up 7%. you have asian airlines up by 9%. you have qantas up by 5%. they are seeing significant gains today. you have the flip side. australia and materials following. -- falling. you have chemicals and basic resources. 19 stocks declining in only one rising. look at gold and silver. etc. the stocks are off 8.2%. 7%. is down off by 7%.b rio tinto is down. evolution mining. you are seein

opec isesting that putting the blame squarely on the u.s.hen it is very much not only an economic decision, but a foreign policy one as well. at least, it has been helpful for them. >> i think for opec to be criticizing the u.s. for developing its own resources is quite ludicrous. it is not carry any credibility whatsoever. putink they are looking to the blame on some of the else because they are really themselves to blame for not having a coherent strategy for some years. >> where do we go from here? does the world get used to hav ng have -- used to ing standards? saudi cut productions and high-cost countries can continue to ramp up production's? ? >> i think we are seeing the u.s. wants to develop the industry. they want to reduce its strategic reliance on things like crude imported from the middle east. it reduces the deficits. so, there is everything good coming out of the shale revolution and it is hardly really begun elsewhere. in the u.s. only holds about 17% of the reserves of shale gas. a lot of other countries could develop their o

opec decided against reducing out what -- reducing output. the director of the cia aced the media -- cia faced the media to answer questions about the torture report. he said it is unknowable whether harsh interrogation tactics produced results. the previous administration faced agonizing choices about how to pursue al qaeda and prevent additional terrorist attacks against our country, while facing our fears of other attacks and preventing other catastrophic loss of life. there were no easy answers. was his first public appearance since the report was released earlier this week, a very controversial report. google is transferring afterions out of russia moscow adopted new rules requiring more data to be stored in the country. despite the shutdown, the company were plans to increase -- the company reportedly plans to increase its business there next year. it has made similar changes in sweden, finland, and norway. one of the strongest storms in decades hammers the san francisco bay area. the system dumped more than parts ofhes of rain on north

minister for opec or opec representative, we'll not start cutting back production until the market hits how will the market take that. >> i tell you i'm amazed opec is doing nothing. in the past they had meetings in a nanosecond to shore up prices. i don't know what the heck is going on there. look, here's the problem. this is not just a drop. this is a meltdown in energy prices and i think the market is starting to question why. it is great it is for the consumer. look at airline stocks and retail stocks they're doing great but markets across the globe now are getting in trouble. i think the market is starting to flush out something. i'm not sure it is good. david: rick? >> i have to get a kick out of it. the reason opec is doing nothing that saudi arabia is driving this, $40 is their price. that is what is making pricing happen. david: u.a.e. said the same thing about $40 oil. >> there they are, they are the one who is benefit at $40. here is what i love. you and i remember a lot of discussion on television, oil prices are too high, destroying american economy. president obama is to b

the shale miners or shale producers or opec? we don't know who is going to predict first. >> it's your prediction how long will these prices last? >> i think for first term, early in the first quarter we are going to continue to see prices dip. we could get below $50 and there might be a tipping point where opec willing say, okay, this has got to stop. but opec is certainly under a lot of pressure so they're going to have to cut production at some point. as soon or late or how long they can hold on is anybody' anybody. but this is could be a breakup of opec, there are those who are suffering including iran. >> kevin, thank you very much, good to see you. >>> on capitol hill, the senate debates a $1.1 trillion spending bill to keep the government running. getting push back from democrats including the president. mike viqueria is more from the white house. mike. >> john, the strange bed fellows this bill has produced. president obama in league with john boehner and jamie dimon, twisting arms trying to get this bill passed. who are

opec is irrelevant.: good stuff, guys, i like that sony meanwhile announcing it will release the movie "the interview" in select theaters this christmas. what caused the company to change its plans? tracy: plus the insurance institute for highway safety releasing its list of the safest cars for 2015. of course our very own jeff flock will tell us the winners. david: love his stories. sony's lawyers telling twitter to suspend the account of user who posted some of the leaked files on the account. we'll speak to the twitter user who posted all the sony messages on his account. stay tuned. ♪ my name is karen and i have diabetic nerve pain. it's progressive pain. first that feeling of numbness. then hot pins. almost like lightning bolts, hot strikes into my feet. so my doctor prescribed lyrica. the pain has been reduced and i feel better than i did before. [ male announcer ] it's known that diabetes damages nerves. lyrica is fda-approved to treat diabetic nerve pain. lyrica is not for everyone. it may cause

, because of the rise of the u.s.ole priewrts, opec is trying to flood the market because they're afraid we'll steal business from them. >> oil production here has soared more than 70% in the past six years, spurred by new hydraulic fracking. >> what is the cartel has done is effectively start a price war with the united states. >> oil war. >> oil war. >> stephen: oil war, it's america's dead dinosaurs versus saudi arabia's dead sign sores. steven spielberg, return my calls. you see, folks, in response to america becoming rich-ass mother frackers, opec is firing its first salvo in this war by opening the taps, allowing the price of crude to fall to a level at which a lot of american companies would lose money on their shale operations. do you know what that means? if the fracking business goes bust, north dakota could become an unpopulated wasteland. ( laughter ) on the other hand, this is great news for consumers, for the economy, and for our giant cars. >> s.u.v. sales are hot again thanks to the gas prices. >> low gas prices are helping sales overall, particularly among bigger models

the slump is hurting opec members.ring spending cuts in the face of falling revenue. >> and those are the top stories. >> falling gold price and restrictions in india to see domestic demand for the precious metal increase. et's go to mumbai. it was a surprising move or was it? >> we have some indication from the finances minister who indicated that the government ould look at removing import curb to stem illegal smuggling. we've steen end of regulation which curtailed buying since introduction in july of last year that. will put demand back to normal levels. according to estimates imports accounted for 25% of the total global gold demand plunge last year when the government import curb to record deficit and stop a slump, the government .ncreasing taxes to 10% after they cut imports and narrows the deficit in the fiscal year and in march from a record of $87.8 billion a year allowing more traders to bring in gold. it jumped to 150 tons which is the highest we've seen this fiscal. they are surprised it may act as a catal

big one, could opec bankrupt shell cruiser here at home? meantime, reuters reporting the permits for new wells dropped 15% across 12 major shale operations for months last month. this all coming as oil prices continue to fall in the decision to drop outputs. prices have dropped for five months and the longest losing strike since the financial crisis. we're going to talk about an oil trader in a couple minutes. the consumer is also in focus this

>> this is mental game going on between opec and u.s. here in the united states there are a lot of variations. average cost to pull oil out of the ground, somewhere in the mid 70s. for opec, middle eastern companies, much cheaper, 60s. we'll put you through pain next couple months. we'll still make money. you will have to cap your wells. that will hurt. so it's a game. >> do you think saudis are driving it to 60 bucks? >> hey, everybody's hand is in this. it wasn't iea came out and said 42 bucks is what the u.s. shale formations need? of course not every well. you know, this is kind of one of these price wars. of course it will benefit motorists out there. as saudis going at it now. of course opec is looking less relevant than ever and u.s. is looking stronger than ever. melissa: twice, thank you so much. >> >> fox business took to facebook to get your feedback on falling gas prices. your responses are pouring in and twitter. we love them. take a look at responses we've gotten throughout the country. gas is 3.25 in connecticut. i used to

are you saying opec is no longer -- wait a moment. are you saying opec is no longer relevant?t.rabia is but the rest of the players, frankly they are a sideshow. they do not count. they do not have power at this stage, in my view. >> opec is dead. we can say that now? ll, we think it is the effective end of opec. toically the saudis have pull the plug and let the market balance itself. if you cannot control the price, you do not have a cartel. said,udi oil minister, he we will let the market figure out where the price should go, right? does that so much a cartel? it does not sound like a cartel to me. >> thank you for your very, very candid talk this morning. fromis francisco blanch bank of america-merrill lynch. coming up, president obama has an announcement on cuba. and a very believable scam. ♪ >> "market makers welcome back to --welcome back to "market makers." i'm stephanie ruhle and this is joe weisenthal. president obama will be announcing the normalization of relationship with cuba. white house correspondent phil mattingly is here. our chief washington correspondent is

but they can't do that to the rest of opec. are they trying to teach the shale oil producers in the united states a lesson? no, they are not trying to do that. opec likes to be liked just like we like to be liked. and they will make the cut, but let's kind of review what has happened here right quick that we thought that you were going to increase demand by 1,300,000 a day. you see it when it happens is what it is. so here we are late in '14 within 12 to i'd say closer to 12 than 18 months we would be back at $100 a barrel. >> how is that possible given the weakness in europe and japan? >> how is it possible? >> yeah. >> you will see these companies in the united states, they are already announcing they will not increase cap x. if they don't increase cap x in '15 they will run the same rate. that is not going to increase production. they are going to keep up with the decline curb and that is about it. so you are going to have -- >> i am seeing a dramatic decline in permits in the month of november, dramatic decline in this coun