Commodity Daily News

Oil Prices Expected to Continue Falling Through December

The price of Crude Oil remained relatively flat on Thursday, hovering near 53.00 dollars a barrel. This came as U.S. stocks and data on Crude Oil demand increased worries over decreased consumption. However, Oil producers are hoping that Crude Oil prices will find support after OPEC's meeting tomorrow. OPEC is set to talk about whether or not they will reduce Oil production further.

Some of OPEC's members, such as Venezuela, are backing the proposal to cut Oil production by about 1 million barrels per day in an effort to stop the price slide. They have also not ruled out the possibility of a further cut in the future. Russia, which is the largest oil producer outside of OPEC, and which produces around 11% of the world's oil, is beginning to look to closer cooperation with OPEC. Russia has presented an agreement on a joint Oil production cut which it hopes will be studied at the OPEC meeting next month in Algeria.

Analysts are expecting Oil prices to continue heading downwards through the end of December despite the recent threat by OPEC and Russia to cut production.