The world oil price rebounded above $100 per barrel after touching recent low to $99
per barrel. On September the 10th the member of OPEC countries met to discuss the oil
price which dramatically declined from their peak $147 per barrel in July amid a global
economic slowdown. All over the world the rate of inflation rose high and they are
still hovering around their recent peak level. However a surprise decision to cut
production by 520000 barrels a day taken by member of OPEC cartel. It is reported that
OPEC president and Algerian energy minister, Mr Chakib Khelil said the output cut
would start immediately. He further added "if you do your own calculations, it is a
cut of 520000 barrels per day"; announcing a new OPEC output quota of 28.8 million
barrels per day.
The International Energy Agency (IEA) meanwhile cut its estimate for global oil demand
this year and next, saying consumers mainly in the United States are changing their
lifestyles in response to high prices. The IEA's monthly report was printed before
OPEC's announcement. US eneergy secretary, Mr Samuel BOdman has asked for producers
to keep oil markets well supplied before the OPEC meeting started.