Tuesday, October 21, 2008

Oil spike: OPEC mulls cutting supplies

Oh dear, the price of Crude oil price started to move upward on expectations OPEC will cut output this week to prop up prices hard hit by slumping demand and the mounting financial crisis.

The OPEC ministers is expected to discuss this Friday, on how much they should cut the supply to balance against their own needs to maintain the oil related projects which would suffer if oil price goes below USD70 per barrel.

The OPEC countries are also concerned on the falling of the commodity prices as well as the global economic slowdown may affect their own economy.

Just hope it will not again trigger another spike and speculative activities which push to an all time high of USD147 per barrel a couple of months ago. We are very concerned that the cut would hinder any chances for the global economy to rebound.

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