Oil falls below $35/barrel

The demand for oil has been considerably reduced amidst this global recession.Because of this for the  past couple of months there is drastic reduce in the price off oil globally.Today the oil is trading at $34 per barrel.The OPEC has decided to cut the production of oil to a considerable amount untill the price goes up.Because of this reduction in oil price, the inflation in India which was on its peak to 12% has been reduced to 6.84 this week.It is expected to reduce more as the prices of oil goes down.Moreover the Indian government has planned to cut the pertol and diesel prices further.However the cut in domestic LPG is not considered.

The Saudi Arabian King has said that the normal price of the oil should be traded at $75 per barrel.But according to current situation it is getting lower and we are facing the loss.The Gulf countries are the ones which are not facing much of the crisis.

All the oil producing countries have decided to cut the production rate to create a demand for oil.This demand will help to increase the price of oil.

Hope the oil price may go up and be stable.This will decide the fate of  coming weeks economic condition.

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