Monday, January 24, 2011

OPEC Increase Production Crude Oil Drops | 24 January 2011

OPEC Increase Production Crude Oil Drops | 24 January 2011

Crude shares resumed its downtrend after a recovering briefly in Asian session.

The March contract for WTI crude oil price lost and approached 88 after OPEC stated a potential increase in supply. OPEC stated that the cartel would increase oil output to meet demand from mainly 3 regions, Asia, the Middle East and Latin America.

The cartel said in its January report that it had a 6M bpd of spare capacity and it could “quickly be made available to the market.”

Any rise above 100 price level would be unsustainable as OPEC will raise supply to prevent oil prices from rising excessively.

January 24, 2010 - by David Frank, Financial Analyst, Ava Fx