Gold investment may rise as oil price 'has found a floor'

Gold investment could be boosted after the head of a major oil cartel explained today (December 19th) that he believes oil prices have found a floor, Reuters reports.

The 13-country Organisation of Petroleum Exporting Countries announced on Wednesday that it would be cutting production by 2.2 million barrels per day.

Now President Chakib Khelil has expressed his belief that the crude price will not fall any further after it plummeted by nine per cent to $36 per barrel yesterday.

He told the news provider: "I don't believe there is any reason for it to fall any further, I don't see it going lower.

"[The move] will have an effect as soon as the market will see the member countries will be applying all the cuts from January 1st. I think things will improve as we go from here."

If oil does begin to rise, anyone contemplating investing in gold may be tempted to grasp the nettle as the price of the yellow metal tends to share similar movements to the crude price.

A report released by the International Energy Agency last week appeared to corroborate Mr. Khelil's views, claiming that global demand for oil will increase in 2009.

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