Commodity Daily News

Oil Prices Could Go as Low as $45!

The Crude Oil prices rose yesterday by $1.09, to $67.84 a barrel in New York on speculation that Organization of the Petroleum Exporting Countries (OPEC) will agree to cut production in order to stem a slump of more than 50% in Oil prices. The prices have fallen a great deal in the last few weeks following concerns that slowing economic growth will curb demand. If OPEC decides to make a cut in Oil production, prices are expected to firm up and move higher in a short term. However, it is also likely that the market will eventually start moving lower again in response to weakening global economy.

The Oil prices also sunk during yesterday's trading session after Saudi Arabian Oil Minister Ali al-Naimi declared that Oil prices will be determined by the market and not by a possible product cut by OPEC. OPEC leaders are scheduled to meet in Vienna today. If OPEC decides to lower production, it may restore equilibrium in the markets and the balance of prices. The last time OPEC lowered its production was in December 2006. The cuts were reversed later in 2007 as Oil prices rose.