As oil sneaks up a few cents this morning, toward $110 a barrel, it appears that’s expensive enough that OPEC won’t cut production. At least for now.
According to Bloomberg, 29 of 32 energy analysts surveyed (over 90%) believe the 13-nation OPEC will reject demands from Venezuela and Iran to cut production. OPEC’s Sept. 9th meeting in Vienna, therefore, should not result in any major oil market disruptions.
But that doesn’t mean Saudi Arabia and company won’t cut production in the future. Credit Suisse believes they will defend prices that drop below $100. And now that $100 seems relatively cheap to the world, why wouldn’t they?
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