Discount Failed to raise OPEC Production Rates

THOSE, THURSDAY - OPEC agreed on Wednesday (17/12), reducing daily production quota of 2.2 million barrel a cutting or the largest undertaken by this organization of oil exporters. Other oil producers, Russia and Azerbaijan, also announced the decision of cutting production quotas to hundreds of thousands barrel per day. "I expect OPEC cutting production cause surprises in the market," said OPEC President Chekib Khelil when asked by journalists in Algeria, is cutting production will toss the price of oil. "When cutting production is not a significant impact on oil prices, we (OPEC) need to review the cutting," he said.

However, the market is not impressed with the latest cutting production from OPEC. After cutting production quota was announced, the price of crude oil plunged into 40.20 U.S. dollars per barrel, the lowest value since the summer of 2004. This is clearly a reflection of investor concerns about the global economy, the crisis is feared drowned to time in the recession causing shocks on the demand of oil.

The fact worse OPEC faced after Moscow keep himself from the direct relationship of cooperation with the organization, which consists of 13 countries that. This attitude prevents Russia hopes to OPEC cutting production of coordinated steps that are expected to push up the price of crude oil. Russian Deputy Prime Minister Igor Sechin and Energy Minister Natik Aliev of Azerbaijan announced the cutting of production more than 600,000 barrel per day. The commitment of the two countries was only symbolic behave.

Russian state, can only cut production that is still far from expectations that OPEC after the state has underwritten the production since November. Meanwhile, Azerbaijan, explains, oil production has been reduced to third because of production problems experienced earlier this year.