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Oil Prices Keep Expected to Keep Rising

The price of oil kept rising this week. The rise is due mostly to OPEC member countries plan`s to cut down oil production by 1.2 million barrels a day. Representatives of OPEC member nations met in Abu Dhabi Wednesday and confirmed their plan to cut down oil production and sale as agreed on in Doha last month. The group will reconvene on December 14th to further their plans.

The price of crude oil has dropped quite drastically since July`s price of $78.40 per barrel of crude oil. The decline in oil prices to under $60 a barrel is mostly due to stabilization of the Middle East, a hurricane season that didn`t cause much damage and concerns over a slowdown in the US economy. High inventory levels as well as disbelief in OPEC`s ability to enforce further cuts in oil production are the main factors in keeping oil prices below the $60.00 mark.

The investment group Goldman Sachs believe that oil prices won`t remain at their current price for long. In a report published lately the company said: "We continue to believe that the recent, lower oil price levels will prove short-lived, particularly as the lower prices have contributed to exceptionally strong demand growth in the U.S." The company has decided to keep its current price forecast of $75.50 a barrel for next year.