OPEC Meeting Today Expected to Yield Significant Production Cut
Posted on 17. Dec, 2008 by admin in Crude Oil, Forex News
Despite a significantly weakened U.S. Dollar, the price of Crude Oil has remained relatively untouched. Floating near the $45 price range, Oil appears to be waiting in anticipation of the Organization of Petroleum Exporting Countries’ (OPEC) meeting later today.
The cartel is expected to discuss a significant decrease in oil production. A potential cut of 2-2.5 m.b.d. (million barrels per day) could help raise the price of Crude Oil to the $50-60 price range in the coming weeks. If, however, OPEC fails to meet the recent fall in demand for Oil with a significant production cut, traders may expect to see the price of Crude Oil plummet to as low as $30 a barrel by the beginning of the new year.
