OPEC's Announced Production Cut Lends Support to Oil Prices
Posted on 08. Dec, 2008 by admin in Crude Oil, Forex News
Starting today’s trading off with the first sustained upward movement in weeks, the price of Crude Oil received proper support this weekend from the Organization of Petroleum Exporting Countries (OPEC). After OPEC announced that the upcoming meeting of oil ministers may have already produced a consensus on cutting oil production, the price began a slow rise. The news in itself brought about today’s early reversal in the price of Oil.
Some speculators would claim, however, that this reversal is to be short lived considering OPEC has stated a production cut repeatedly since before September of this year and has yet to really follow through. Speculators are making early gains on the initial movement in the price of Crude Oil, yet there is talk that most are staying out of the game until the actual rate cut comes into effect. This could easily be toted as the savior of Oil prices, but end up being another false promise by the Oil cartel. We’ll have to wait for their December 19 meeting, and afterwards, to see what will actually happen.
