Oil nears $100 a barrel ahead of Opec meeting

Angela Jameson
London Times
Tuesday, Sept 9, 2008

Oil prices slumped closer to $100 a barrel today ahead of the start of today’s Opec meeing in Vienna, putting more pressure on the oil producers’ cartel to cut supply to the markets.

The fall to $101 a barrel takes the price of crude to a five-month low and within touching distance of the pyschologically significant $100 a barrel level, which was last seen in April.

However, most analysts believe that the oil producers will elect to maintain the current level of production, which is favoured by Saudi Arabia, the biggest producer in the cartel.

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Oil prices have now been falling for two weeks consistently, despite a short-lived rally yesterday on the back of concerns over the impact of Hurricane Ike in the oil-rich Gulf of Mexico.

However, the surging dollar, propelled by the US Government’s bailout of mortgage financiers Fannie Mae and Freddie Mac, countered the rise in oil.

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