Commodity Daily News

OPEC's Production Cut and a Weakening Dollar Increase Price of Oil

Crude Oil prices rose this past week as signs that the Organization of Petroleum Exporting Countries (OPEC) may begin to cut output from 2-2.5 million barrels a day in order to stabilize prices. Reducing Crude Oil output will be heavily debated as a possible way to increase Crude Oil's price in the last month of 2008.

Prices rose 13% last week as talks on the U.S. auto bailout progressed, pushing the USD to recent highs, and Saudi Arabia, the biggest oil producer in OPEC, said it has already begun cutting production. The group will review output again when ministers meet in Algeria on Dec. 17. Traders may look for another rise in value, potentially reaching into the $45-$50 range before the day's end if this trend continues.