Concerned over declining crude oil prices in the international market, Organization of Petroleum Exporting Countries (OPEC) announced to cut production by 2.2 million barrels a day from January 1. Meanwhile, crude prices touched four year low at $40.06 a barrel in the market. Crude prices were $39.44 a barrel on July 13, 2004 and touched peak level of $147 a barrel in July.
OPEC expects increase in demand following proposed production cut. Crude oil demand declined following global financial crisis and fears of recession. Next meeting of oil exporting countries would be held on March 15, 2009 in Vienna.