Meeting in Vienna yesterday, OPEC failed to enforce production cuts to halt the fall in world oil prices.  The AP reports: Reflecting its lessening oil clout, OPEC decided Thursday to keep its output target on hold and sit out falling crude prices that will likely spiral even lower as a result. Oil prices fell sharply on the news. Even though the decision was largely expected, it showed the once-powerful cartel is losing the power to push up markets to its own advantage. OPEC has traditionally relied on output cuts to regulate supply and prices. But it appeared to realize Thursday that with cheap crude in oversupply, a reduction would only cut into OPEC's share of the market without a lasting boost in prices and with others outside the cartel making up the difference. Normally, falling oil prices are very good news for the American economy, amounting to a virtual tax cut for families, because so much energy consumption is inelastic.  People must...(Read Full Post)