01/25/2009 05:12 am ET Updated May 25, 2011

OPEC Wants $70 Oil, But World Sneezes At Output Cut

The oil consuming world has slapped the cartel by continuing to drop prices after OPEC's big cut last week.. Today, crude traded down a stunning 9% to below $36. According to MarketWatch, Crude inventories at Cushing, Okla., the delivery point for crude futures contracts traded on the New York Mercantile Exchange, reached 28.7 million barrels in the week ended Dec. 19, the Energy Information Administration reported.

OPEC members Iran and Venezuela insist that crude has to be above $70 a barrel for them to balance their budgets. Russia is also up against severe economic pressures as money moving into the country's economy is shrinking rapidly due to the drop in oil prices. This is beginning to undermine political stability.