Year before it was forecasted by OPEC that oil will reach up to $76 a barrel, but it was inverse as they were expecting. Instead of rise the price went down to $58.74 yesterday.
Due to such unexpected changes, OPEC members have decided to lower down its production by 1.2 billions per day. Although the annalists of OPEC are hoping that the cutting in production will boost up the market but not now, it may take couple of weeks or in the mid of November. Experts are of the view that approaching winter will simultaneously increase the oil demand which will increase the prices.
On the other hand, developed countries like Japan and U.S. are of the view that decrease in oil production by OPEC will not lay any impact on the market because of new inventory.
Even know OPEC members are hoping that prices may raise before peak winter. It can be true because during peak winters there is a sudden rise in demand of oil in these months, therefore there can be the rise in oil price due to imbalancement.
