OPEC cuts fail to have significant impact on oil prices

Monday morning saw light, sweet crude for April delivery dip to US$38.44 a barrel on the NYMEX as news that OPEC had slashed production by over 4 mln bpd was overhauled by news from the equity markets of falling stock prices. Brent crude dipped to US$40.99 in London. Total February output for OPEC nations is expected to average 25.3 mln bpd, down 4.3 mln bpd from September. Last week's EIA report indicating an unexpected fall in US crude inventories from a 20-month high, is a signal the OPEC cuts are starting to stabilize the market. But demand still continues to be poor as the global economy struggles to find a way out of the meltdown. Economists warn a sharp rise in oil prices could worsen the global downturn, as consumers and businesses could tend to cut back spending further. Gloomy demand forecast, unlikely to recover in the short term, continues to exert downward pressure on oil.
  More News  Post Your Comment

Previous News

Next News

{{comment.Name}} made a post.




There are no comments to display. Be the first one to comment!


Name Required.


Email Id Required.

Email Id Not Valid.


Mobile Required.

Email ID and Mobile Number are kept private and will not be shown publicly.

Message Required.

Click to Change image  Refresh Captcha