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OPEC announced a surprise cut in crude oil production, the biggest contraction in its history, but CBS' Elizabeth Palmer was not impressed. The 6% cutback was designed to restore the global price of a barrel of crude to between $60 and $100 from its current $40-or-so level. "Demand for oil is slowing so dramatically as the recession deepens that OPEC's production cut has not pushed the price of oil up, at least not yet. In fact it has even dropped a little." Taking A Closer Look on ABC, Robert Krulwich advised us that continuously falling prices was something to dread. "You may wonder what is so terrible about deflation," he proposed in one of his signature cartoon explainers after the Consumer Price Index in November dropped for the fourth month in a row. "Once the idea takes hold that things will cost a little less if you wait then all across the economy people wait a little longer to do business." Activity stalls. Layoffs ensue.
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