Turning point of the price factor.

Factors that affect the direction of oil prices in 2008 will differ from year 2007 with oil prices in 2008 will depend on the balance of supply and demand is the main While oil prices in 2007 is the year of speculation of funds. The resulting adjustment to higher oil prices and very late in the year that oil prices decline due to oil demand slowdown. Change behavior of people using oil. Which result from the economic slump that has greatly influenced oil prices decline.

Although OPEC has announced to reduce capacity 3 times in quarter 4 of year 2007, including 4.2 million barrels per day. Which represents the maximum record Still can not maintain stability of oil prices. One reason is that in the past. Members necessarily reduce production capacity as announced. The average reduction is usually only 50-70% of the announcement only. Want to sell because the oil revenues into their countries. Making oil supply. Raw continues to overflow.

In addition to the concerns of the world's oil reserves. Should not affect prices such as oil as in the past year. Because today is excess oil production capacity (Spare Capacity) in the world more than 3 million barrels per day.