Commodity Daily News

A Steady Decline in Price despite Call for Production Cuts.

Today could be an important day to keep an eye on the price of Crude Oil. As the OPEC meeting continues to discuss what should be done to curtail, or maintain, current production levels, the price of oil gradually slides closer to the $100 mark. It reached down to $103.42 at the end of yesterday's trading session. OPEC President and Algerian Minister of Energy, Chakib Khelil, called for a cut to production in light of falling prices. The Saudi oil minister, however, stated that his country will maintain producing its present surplus. The debate rages on. A rogue element also emerged in yesterday's meeting in the form of a Russian delegate. Russia, though not a member of OPEC, is one of the world's largest oil producers with the ability to offer a counter to Saudi Arabia's unchecked power if allowed membership into the organization. Another emergency meeting is also being proposed for November to continue discussions on production and quota levels.

Traders should take note; the recent OPEC meeting has not yet produced a decision on production levels. Russia's presence also does not signify an impact to the price of oil in the short term. Nothing suggests that the price of oil will begin to act contrary to its recent falls and will likely continue to slip toward $100. The US is also set to announce its Crude Oil Inventories later in the morning which has implications for inflation as well as growth, therefore producing mixed volatility in the market.