The Oil per barrel has been hit the lowest mark since may 2007 ,a 17 months low in the price.The price was $67 for one barrel this morning which was the lowest mark.The slowdown in the oil demand is the real reason for this low price of Oil.The Oil producing companies and countries have feared about the lowering of oil price to down iin future and they might go into loss as well. So inorder to stabilize the global economy and also to bring the oil prices in equilibrium position the OPEC has decided to cut down its oil production by 1.5 million barrels per day.But the experts of economy say that the cut in the production should be made to 2 million barrels perday since this announced cut in oil production wont be enough to bring back the global economy to the normal position.The decision by OPEC came after the US crude to be delivered to $63 in december as calculated in the electronic trading and so the production has been cut and it will be until the oil prices come up more than $90 per barrel.
The investors has expected to cut more in oil production to solve the financial crisis.The OPEC has also informed by the economists that if the Economy recession continues the oil would go down to $50 per barrel which will lead to the downfall of the Oil producing countries.Then they have to make a decision in the cut in more production.So it would be better to cut the production by 2 million barrels per day now itself . Even the Iran’s petroleum minister also agreed to this. Moreover the upcoming winter season in northern hemisphere will increase the fall in demand of oil and obviously lower the price of the oil.Thus OPEC countries should keenly look on everything and take a diplomatic decision inorder to stabilze the global economy slowdown.