Oil Slips Slightly, OPEC Mulling a Second Production Cut
Oct 29th, 2008 | By Doug Casey | Category: Financial NewsIn the energy market Monday, oil slipped lower, with crude for December delivery closing at $62.73/barrel, down 49 cents. November reformulated gasoline fell 2.1 cents, to $1.4555/gallon.
Crude fell even as OPEC was pondering a second production cut. Abdullah al-Badri, OPEC’s secretary general, said the cartel could cut production again if prices keep falling. “We will have to wait and see how the market will react [but] if this problem continues then we will have another cut,” Badri said.
“OPEC is losing the war on oil prices,” wrote Phil Flynn, of Alaron Trading. “The truth is that another emergency meeting or talk of another production cut before the first one has had a chance to take hold is a sign of OPEC desperation.”
“OPEC doesn’t know what to do at this point,” said DTN’s Darin Newsom. “Prices keep falling due to demand decreases and are not responding to cuts in supply … Certain members, most notably Venezuela, aren’t making money with crude at these price levels.” So, it’s “not surprising that another round of meetings are being called for.”
Source: Oil slips slightly - OPEC mulling a second production cut
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I am quite surprised that Crude has slipped as far as it has. I know it needed a pullback but this has gotten quite extreme. I am not sure where the support may be, but I just cannot see it slipping into a multi year bear market.
Jesse W.
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