Commodity Daily News

OPEC Meeting May Reverse the Crude Oil Slump

The price of Crude Oil dropped by a small margin during yesterday's trading session and closed at about $43.30 a barrel. Crude's small dip was owed to the U.S. forecast that annual demand will decline for the first time since 1983.

The recent slide in Crude prices is expected to be addressed at the meeting of the
Organization of the Petroleum Exporting Countries (OPEC) ministers on December 17 in Algeria. The ministers are expected to agree to reduce the production of Oil by 2-2.5 million barrels a day. Global Oil consumption is forecasted to average 85.75 million barrels a day by the end of 2008, down 50,000 barrels from 2007. Analysts predict that Crude prices may hold between the $40- $50 level until the end of the month.