Crude Attempts to Reverse its Price Plunge
Posted on 09. Dec, 2008 by admin in Crude Oil, Forex News
Crude Oil rose 3% on Monday after falling almost 25% last week, the most since 1991. Crude has previously declined as a result of U.S economic data showing a worsening recession. The U.S. economy lost 533,000 jobs in November, bringing job losses this year to 1.91 million. Oil prices briefly firmed on speculation that the Organization of the Petroleum Exporting Countries (OPEC) is going to cut Oil output when the cartel meets on December 17. OPEC, facing a slide in Crude Oil prices since July of over $100 a barrel, has already agreed to cut about 2 million barrels per day of production to support prices. The member nations are said to be leaning toward further supply cuts at the December 17 meeting in Algeria.
The Organization of the Petroleum Exporting Countries pumps more than 40% of the world’s Oil and agreed to cut daily output by 1.5 million barrels in October as prices slumped and inventories rose. In addition to the OPEC cartel, the Saudi Arabian Oil Co. announced yesterday it will also reduce Crude Oil supplies to a few of its Asian customers even more next month. Saudi Aramco is the world’s largest state oil company and the world’s top crude exporter. Analysts speculate that the Crude prices will likely increase as the date of the OPEC meeting approaches. The Organization will most likely fight hard in order to keep Oil prices from falling below $40 a barrel.
