Saturday, November 15, 2008

OPEC Could Cut Production by 1 Million Barrels in Cairo

Fighting to stave off oil plunging below $50 a barrel, OPEC may cut production another 1 million barrels a day.

Expectations are at the next OPEC meeting on November 29 they will definitely cut production again, the question is only by how much. The 1 million barrels a day figure is expected by most analysts; although some have said it could be anywhere from 500,000 a day to 3 million barrels a day.

The problem from OPEC's standpoint is it's one thing to announce production cuts, it's another thing to implement them, as supply cut announcements from September and October are still in the process of being put into action.

Iran is calling for cuts between 1 to 1.5 million barrels a day.

Oil futures closed Friday's session down to $57.04 a barrel for December delivery on the Nymex.


  1. Allen, OPEC can keep trying as much as they want, it is not stronger than the current market forces at play. The market seems to laugh at each cut. When I read the news about the hijacked tanker, I thought we would see a substantial spike.. Guess Not.. perhaps it will take a FLEET of ships to be stolen, or perhaps a few million barrels more... If you've been considering the Canadian markets like most of us holding dying us equities, found this helped quite a bit.

    I think we will see the next big spike once Obama fully explains his policy on foreign oil, till then the world has deaf ears to OPEC's efforts.

  2. Most experts are saying over production is so drastic right now that oil prices are likely to go down regardless of what OPEC does of the next 6 months. Candian markets show some opportunites however oil sands might be a concern in terms of extraction and refinement costs if prices continue downward. Nice site that cover alot of over looked opportunities up north.