Oil Rebound On Expectations of OPEC Output Cut

Author: Avijit Bajpai

Oil prices are continuously facing a downturn as the fears of worldwide recession are hitting the demand of energy products quite boorishly. Yesterday the price of crude oil per barrel dropped to $67 mark in the global oil market. But today in the morning trade in the Asian markets, the downturn pattern ended with a rise in oil prices on the expectations that Organization of the Petroleum Exporting Countries (OPEC) is going to take a decision regarding a cut in oil production at a meeting in Vienna.

New York’s light sweet crude oil prices for the December release gained $1.08 to $68.92 per barrel from its earlier day’s close. Prices for Brent North Sea crude oil also jumped 82 cents to reach $66.74 a barrel.
	OPEC today at a meeting to be held in Vienna is all set to take a decision to limit the production rate of oil in order to shore up oil prices in the global market. Chakib Khelil, President OPEC, said yesterday that the cartel of petroleum exporting countries would take a decision to slash the oil output level. Iran and Libya, who are among the prominent oil exported of OPEC called for a cut in the per day output level with around two million barrels. Venezuela on the other hand said it would introduce a reduction of at least a million barrel.