OPEC to Discuss Production Cuts; Oil Demand Falling
Posted on 18. Feb, 2009 by admin in Crude Oil
The Organization of the Petroleum Exporting Countries (OPEC) is looking to reduce oil supply further if demand is insufficient to absorb supplies, oil ministers said on Tuesday. OPEC, supplier of more than a third of the world’s oil, has raced to cut supply to match falling demand from a slowing global economy. OPEC next meets in March to discuss supply. Crude Oil Prices have fallen by more than $110 from the peak seen last July’s to now trade at $38 a barrel on Tuesday. Oil has mostly traded in a $35 to $45 range since December.
Analysts say that the economic outlook will continue to dominate the first half of 2009. The United States, Euro-Zone and Japan are all in synchronized recession, which is depressing fuel demand and sending Crude Oil prices down sharply from its record highs. Traders should watch for U.S. crude oil inventories data to be released by the American Petroleum Institute later on Wednesday and by the U.S. Energy Information Administration on Thursday. These will give an indication to the reserves held by large energy consumers like the United States.
