Commodity Daily News

Oil Prices Resume Sliding despite OPEC's Production Cut

Oil prices have been on the fritz lately; inexplicably dropping in value after the Organization of Petroleum Exporting Countries (OPEC) announced its supply cut and then quickly rebounding during early trading hours the next day. More recently, the price of Crude Oil has resumed falling back towards $40 a barrel, dipping as low as $41.54 yesterday. Apparently, expectations are low for OPEC to actually follow through with its production cut.

If the price of Crude Oil fails to stabilize, the Oil cartel has left the door open for future cuts as they are trying to maintain a price level of $70-80 a barrel; their next policy meeting is scheduled for March 15, 2009, in Vienna. However, OPEC has stated that another emergency session could be called earlier if prices fall below $30 a barrel before March.