Crude Oil Receives Support from Saudi Arabia
Posted on 11. Dec, 2008 by admin in Crude Oil, Forex News
Saudi Arabia is taking the responsibility to prop up Crude Oil prices on its own. It has been reported that the world’s largest Oil producing nation will cut supplies to customers next month. In addition, it is widely expected that OPEC will cut output when it meets on December 17th in Algeria.
Because of the Saudi supply cuts, the price of Crude Oil rose over 1.5% on large price volatility. Crude ended the day at $44.34. These gains were in spite of U.S. Crude inventories posting larger then expected supplies according to the Energy Information Administration.
The supply cuts may not have such an impact on the price of Crude Oil. The gloom that surrounds the global economy has kept a tight grip on the price of Crude, keeping it below the $50 Dollar price level for the week. We may expect Crude to stay below this mark, and possibly find a floor near the $35 mark.
