After some sharp drops in oil this week, the precious crude is trading up a bit today to close out the week, as investors are betting that OPEC is going to step in and announce some production cuts aimed at curbing the sell off the market has been seeing recently.
As we already know, oil traders have been sending prices lower as global recession fears have stoked concerns that a broad economic slowdown is going to lead to a drop in global demand. While that is debatable, it is still reason enough for concern, and has kept prices in a virtual free fall the past couple months.
Before oil's most recent declines, OPEC was supposed to next meet in December, but then decided to move up their meeting to November to discuss the current output levels. Today they announced that they were going to move that date up even a bit more, and will gather next week instead, and traders are expecting to hear the group announce reductions in its output.
Most analysts are expecting for OPEC to announce a 1 million barrel a day production cut. Will this be enough to help oil rebound from its recent drop? We will just have to wait and see about that one.
Let's close with a current chart of oil so you can get a better idea on just how sharply it has fallen since its all time high this summer:
Michael Fowlkes has worked as a stock trader for seven years and spent the last four years working as an analyst for the online investment advisory service Investor's Observer.
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Reader Comments (Page 1 of 1)
10-17-2008 @ 5:50PM
Andrew Boggs, BA said...
VOTE!
- Andrew, MALL727net -
10-17-2008 @ 11:15PM
Miguel Andujar said...
I am a commodities trader, I do believe, that we already hit the bottom at 69.85, I could be wrong, but that's my believe. Crude Oil goes through Cycles, we are about to get to the bullish Cycle once winter hit us.
10-18-2008 @ 1:08AM
spackle said...
Good God people! When is someone out there going to mention that if oil prices are once again affordable, people will start spending money again, because they will have money to spend!!!! THAT is the answer to to what is causing the stock market to collapse. Simple, isn't it?
10-18-2008 @ 4:25AM
Greg Young said...
Miguel your broken english belies your true identity - Nice try OPEC raghead
10-18-2008 @ 5:25AM
bob said...
50$ a barrel, here we come!
Greetz Bob - http://www.torrentbug.com
10-18-2008 @ 6:22AM
Steve said...
Only the speculators, oil companies and OPEC are wanting oil prices back up. I totally agree with spackle. Seems that low energy prices are good for everybody else in the world, except speculators, oil companies and OPEC. And screw them all.
10-18-2008 @ 7:38AM
Emil J Kovach Jr said...
First Of All, Your CHART, Is Not Reflective Of Reality, 90 Days Or So, Is Not A Market Indicator. The Uncertaintity Of Housing, That Spread Into The Financial Markets--Sent Money Inrto What was The Usual Safe Haven, Commodities, But SO MUCH MONEY Started Chasing This Area--Prices Became Driven By Speculation, In Attempts To Cover Large Losses In The Financial Stocks--Crude Is Returning To Reality, And As Prices Drop--Unfortunately--Output Will RISE--Meeting, Cutbacks, Or No Cutbacks, REMEMBER There Are No OIL POLICE.
EMIL J KOVACH JR
10-18-2008 @ 7:55AM
EMIL J KOVACH JR said...
IF YOU THINK The Future Price Of Crude Oil Will Be Higher Because Of This "Emergency" OPEC Meeting, Which May, Or May Not Include Production Cut Backs, You Are Probably Wrong. A SPIKE Will Probably Appear, As Traders Buy On Emotion, But Reality Is--OPEC Members Sell Oil Looking For CASH FLOW--An Artifically High Prices Has Addicted Some To That EXCESS CASH, And They Will Indeed Look At CASH COMING IN, More Then Crude Oil--Going Out, And Will Sell Crude As Necessary In AN Attempt To Cover Recent Cash Short falls.
Demand Is NOT THERE Right Now,
And Will Not Return For A While--It's All About Demand, Not Futures Contracts.
A Lower Price, will INCREASE Demand.
EMIL J KOVACH JR
10-18-2008 @ 8:54AM
gatorsden06 said...
Americans have reached there breaking point , and will not spend more until oil prices come down a lot futher. The next 12 monthes we will conserve even more with the falling crude prices. And if crude goes back up that will just make it that much worse. Like I said we have reached the breaking point, and are TIRED OF FEELING LIKE WE BEEN RIPPED OFF, FIRST IT WAS THE OIL COMPANYS, NOW ITS THE STORE OWNERS.
10-18-2008 @ 10:33AM
gus said...
WENT IS OPEC GOING TO FIGURE OUT THAT THE PARTY IS OVER , RIGHT NOW THE WORLD ECONOMY IS TANKING BECAUSE OF HIGH PRICED OIL, I THINK WE ARE GOING TO HAVE A DEM PRESIDENT BECAUSE OF THE ECONOMY AND THE FIRST THING THAY ARE GOING TO DO IS GO AFTER ENERGY TO GET PRICES DOWN ,SO PEOPLE CAN LIVE !