Oil Prices Up on Talk of OPEC Cut

Oil prices have increased since its four-year low of $40.35 a barrel. Oil prices increased $2.90 to $43.71 barrel. The president of OPEC, Chakib Khelil, said on Saturday that they could “surprise” markets with a production cut at their meeting in Algeria later this month; however, he did not state how large the cut would be. Analysts expect the cut to be approximately 2 million barrels.

Analysts now forecast lower prices amongst the global recession. Merrill lynch said that oil could hit $25 a barrel if China is hit hard by the global recession.