Non-OPEC Producers asked to Lower Crude Oil Output
Posted on 01. Dec, 2008 by admin in Crude Oil, Forex News
As anticipated, the Organization of Petroleum Exporting Countries (OPEC) has asked that non-OPEC Oil producing countries, such as Russia and Mexico, to reduce production in order to contain the downward moving price of Crude Oil.
Prior to the close of trading last Friday, the price of Crude Oil jumped $3.00 a barrel to end the trading session at $55.00. This came in expectation of OPEC’s meeting since an announcement to cut production was being forecast. Many traders wanted to open buy positions at the lowest price possible before the market jumped on Monday morning.
Now that OPEC is calling for production cuts from within its member-states, and outside countries, analysts are asking the question of why OPEC did not make these moves sooner as the evidence of a downward spiraling price of Crude Oil were obvious over a month ago. This sit and wait approach may indeed signify a too-little-too-late tactic to control Oil prices which may find themselves bottoming out in the near future below $40 a barrel.
