Business: The Oil Producers Feel A Money Squeeze

The dizzying series of oil-price hikes begun by OPEC in late 1973 led to widespread speculation that the cartel's members would eventually soak up a disruptively large share of the monetary reserves of the non-Communist world. But these forebodings could not take into account the world recession that has slashed oil demand. Today OPEC'S output is running at about 28 million bbl. per day, v. 33 million bbl. just before the 1973 embargo, and revenues are falling below expectations.

A few OPEC states, notably Saudi Arabia and Kuwait, are still taking in more money than they can spend. But at least four...

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