Meeting in Vienna, Austria, Thursday, the Organization of the Petroleum Exporting Countries (OPEC) decided not to curtail oil production despite rapidly falling crude oil prices.

Crude oil prices have dropped 30 percent since early summer. However, leading producer Saudi Arabia led the way in holding the line on current production, happy to reap profits due to market share and continued revenue generation, analysts said.

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A major factor in OPEC and the Saudi's decision may have been reluctance to encourage increased shale oil production from the U.S. amid moves to make the country energy independent in 20 years. Maintaining current production levels makes it more difficult for the U.S., Russia, Canada and non-OPEC nations to ratchet up their own production, analysts said.

Less well-off OPEC nations have pushed for production cutbacks as benchmark crude oil plunged the last few months. Thursday's decision to stay the production course sent those prices plunging even further. Benchmark crude fell more than US$6 a barrel Thursday to US$71.25 a barrel.

Saudi oil minister Ali al-Naimi applauded the decision to roll over the 30 million barrels a day production ceiling that continues to exceed world demand by a million barrels daily. Demand is expected to remain stable through next year.

OPEC members like Venezuela and Iran have opposed the decision to maintain current cure levels, but cannot afford to take unilateral acton and cut their own production lest they lose out.

Venezuela and Algeria, in particular, vociferously opposed the decision although Rafael Ramirez, Venezuela's foreign minister said his country accepted the decision on hopes current production levels would steer the U.S. away from shale oil production that costs more to produce.

OPEC accounts for about one-third of all global oil production. Gulf nations lead the way for group decisions. Those nations can withstand the coming market battles looming over the next few years due to their large reserves of foreign currency.

Other OPEC members may have a tougher time, analysts said. Russia is reeling from tough Western economic sanctions over its Ukrainian policy and needs the revenue. Prices needed to be at least US$100 a barrel for Russia to balance its budget.

Tagsopec, cruide oil, gas, Austria, price cutback