The falling knife falls some more. The price of crude briefly dipped below $34, and is now trading at $34.50. Just a few days ago it was in the low $40s and last week it even touched $50.
OPEC, like the National Assocation of Realtors does with housing, is now trying to jawbone the market around:
Reuters: Oil prices have found a floor around current levels, OPEC President Chakib Khelil told Reuters on Friday.
He was asked if he expected the oil price to fall further: “Not really,” he said. “I don’t believe there is any reason for it to fall any further, I don’t see it going lower.” Asked if he thought OPEC’s Wednesday cut of 2.2 million barrels per day was enough to restore the market to balance, Khelil told Reuters: “I think so — its 2.2, that’s plenty.
Hopefully OPEC that floor in oil prices holds better than all the “bottoms” we’ve seen in housing prices.