Commodity Daily News

OPEC Scheduled Meeting to Discuss Potential Cuts to Oil Production.

Dodging storms and defying international conflict, oil prices have continued to sink. Prices dropped over a buck last night to hit $107.71 this morning. Market analysts are expecting this price to continue further down this weekend to eventually sag below the $100 mark, in which case OPEC will meet to discuss a cut in production. OPEC, which produces 40% of the global energy supply, has stated that market volatility is still high and they will consider waiting for more stability before making any cuts, but if prices continue to fall, they will do just that.

Another major factor affecting oil prices is the strengthening dollar. As it appreciated even more yesterday, dollar-based commodities witnessed price drops. If the dollar continues its upward swing, the prices of these commodities, given the stagnating economy, may see this as a persisting trend. The impact of today's Non-Farm Employment Change figures on the USD will no doubt have an effect on oil prices, but the decrease in demand for energy and the worldwide economic slowdown will most likely continue their downward push on crude oil's price until reaching a point where producers would intervene with production cuts.