Price of Crude Oil Set to Sink Until the Mid-December OPEC Meeting
Posted on 05. Dec, 2008 by admin in Crude Oil, Forex News
The Interest Rate cuts made by the European Central Bank (ECB) and the Bank of England (BoE) confirm worries that the economic slump is likely to reduce energy demand. Oil prices dropped more than 6% yesterday, to its lowest level in nearly 4 years to about $43.80 a barrel.
According to analysts, the recent decline in Oil prices was due to new fears that the demand for Oil from the United States and Europe are likely to continue its drop in the coming year. The economic report yesterday from the U.S. that showed Factory Orders had plummeted for a third straight month in October reflected weak demand both at home and abroad.
The Organization of the Petroleum Exporting Currencies (OPEC) members refrained to cut Oil production during their recent meeting last weekend in Cairo, Egypt. Analysts, forecast that the price of Oil will continue to slip until the December 17 meeting of OPEC in Algeria.
