According to Yahoo News (UK-Ireland via Reuters), OPEC has agreed to keep oil production at current levels until May (when it will re-evaluate).  They have also said that they will closely monitor the limits they have previously put on production to make sure they are followed.  This is an interesting story for a number of reasons.

First, President Obama called the Saudis last week.  The White House is unwilling to discuss the contents of the phone call.

Second, OPEC is not doing this because they love the western countries that buy their oil–they are doing this because the worldwide recession has seriously cut the demand for oil, and as the price comes down, the demand will gradually go up.  If they cut production further and prices go up, the demand will go down, and they will make even less money than they are currently making.

Third, when oil was at its peak, demand decreased, and America began to talk about offshore drilling and energy independence.  Energy independence without offshore drilling is a distant prospect, but with offshore drilling, it is probably attainable within three years (contrary to what the environmentalists have said).  The idea of an energy independent America is totally frightening to OPEC.

OPEC needs $100 a barrel oil to properly fund terrorism around the world.  It would be nice if that did not happen.