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OPEC May Plan to Raise Oil Prices

The price of oil passed the $60 a barrel mark Monday after news on Saudi Arabia`s intentions to support a second cut in oil production quotas as winter in the United States is expected to increase demand for oil. OPEC, the international oil cartel is is expected to cut its member`s production quotas in December, if the quota cut of 1.2 million barrels a day decided upon in November will fail to "stabilize" oil prices.

The price of a barrel of crude oil reached $60.14 a barrel, an increase of 1.6%. Electronic trade in oil varied between $58.66 and $60.17 a barrel in the days leading up to Thanksgiving. OPEC currently produces 40% of the world`s oil production. The organization decided to lower oil production quotas earlier this month due to the drop in oil prices in international markets. OPEC is expected to discuss further lowering of production quotas in their next meeting in Abuja, Nigeria`s capital, in mid-December.

The relatively comfortable weather conditions this winter have caused a decline in demand for oil and contributed to large oil deposits. The United States is the world`s biggest consumer of oil. The temperatures in North-Eastern United States, an area that usually consumes a great deal of oil for heating purposes, are expected to be higher then usual this week. Experts predict that the consumption of oil for heating in New York City is expected to be 36% lower then in previous years. The weather in the United States is expected to go down to normal lower temperatures in December which is expected to raise oil prices.