According to Bloomberg:
Nov. 16 (Bloomberg) — OPEC, supplier of more than 40 percent of the world’s oil, is likely to cut production at its summit in Oran, Algeria, next month and may not lower output at its meeting in Cairo on Nov. 29, the group’s president said.
“We aren’t likely to take a decision in Cairo,” Chakib Khelil, who is also Algeria’s energy minister, told reporters today in Algiers. “In Oran, we will have enough information to make a decision. There we will decide to cut.”
Read the full article at Bloomberg
- So after last month of 1.5 million barrels cut by OPEC, they will be meeting again at December 2008 to discuss about the oil supply cut again and this time it may be even higher.
The probability of a price shock by this news may be uncertain due to the high volatility on the economy right now.
We can ensure that the oil traders are pretty jittery on this one and if the oil price continue to fall, less oil will be coming out into the market.
2015 is the estimated time given by the article above that the price may rebound back to $100 a barrel but it’s over conservative about their estimation as always.
My estimation is it may be earlier then predicted if the market starts to convulse itself by unforeseeable circumstances such as any conflict in the middle east or sudden major oil supply cut by the OPEC countries.
It may be few months down the road to see the price spike…or immediately. Depends on the market volatility and demand shock.
Panic button may be triggered, profit & greed push the spike all the way similar to the pressure selling last 2 months.
Well, I may be wrong so don’t bet on it hehe.
Popularity: 1% [?]
