OPEC Tries to Save Oil Price from Worst

After made new record high $147 USD /barrel in July 2008, oil price has been declined more than 100 percent. Premium price is lowest in last 3 months in America after cut 53 cent. Oil price is predicted will go down below $40 USD/barrel as Global Financial Crisis result. Oil shipping contract in New York Mercantile Exchange show the opposite after run high after closed in $49.93 USD/barrel higher than before $48.25 USD/barrel.

In Asia, Oil price has no power also. January shipping for light sweet oil is closed at $48.47/barrel, or declined 95 cent yesterday afternoon in Singapore. Merchant claims and scare about Global recession because demand for energy is running low.

December Shipping, Oil price goes rise to level $49.62 after sit lowest price since 18 may 2005, $48.50 USD/barrel. As we know, Oil price declined to fantastic price after running record high (upper $100USD/barrel). United State Government has cut premium price to follow the lowering on oil crude price. Analysts then said to predict that Oil price contract shipping will go down below $40 USD/barrel.
Fantastic declining as resulted of Global crisis where demand from business (read Industry) declined in high percentage. To anticipate over supply (over supply has positive correlation to reduce oil price), OPEC might decide to cut their oil crude quota in near. Last month, OPEC had cut their supply with declined their quota to 1.5 million barrel/day. When OPEC start to cut their supply? Analysts predict OPEC will do it in December next month. So far, OPEC supplies 40 percent of total Global demand and to make OPEC as important rule in pricing manipulated.

OPEC tries to prevent the worst price

In 19 November 2008, OPEC decided to consolidate with NON OPEC Countries in order to stabilize oil price-working together. They will meet in Cairo in November, IRNA reported. The main agenda are to talk about the current oil price condition and try to make plan in preventing oil price to worst. According to OPEC Staff, one of their solutions (decision) is walking together in oil market management. They must stick together to keep fairly oil price and that is very important move.
IRNA reported that Nozari has contacted Russian Ministry of Energy Sergey Shmatko last week. Russia takes 10 percent of total oil production, and OPEC really hopes that Russian will agree with them, walking together with OPEC to manage oil market. As one of the biggest NON-OPEC supplier has sent their staff as observer countries in OPEC submit meeting in September last two month

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