Chu Warns OPEC Production Cuts Could Damage Global Economy

Energy Secretary Steven Chu says that if OPEC cuts production to increase oil prices, it could severely hamper global economic recovery.

Chu told reporters after a Senate hearing that he'll speak to OPEC oil ministers before the cartel's meeting Sunday to urge them to keep production at current levels. He said a production cut would "create a huge strain on the ability of the world economy to recover."

The OPEC producers already have cut production quotas by 4.2 million barrels a day, but have been unable to stem the downward spiral of global oil prices. They are believed to be considering slashing production by another 500,000 barrels a day, although some investors now say that's no longer certain.