Oil closed at just under $60 today, a place where it’s been hanging for the past week or so. With the price falling of late, Margaret McQuaile at Platt’s oil blog wonders how OPEC will react.
In December when the price of oil crashed, OPEC said it would tighten its production, since demand was weak and the price of oil was down. OPEC managed to curtail its production for a little while, but as the price of oil rose, so did the amount of oil coming from the members of OPEC.
Now that the price of oil is falling, will OPEC actually reduce the supply of oil? And if it does, will it actually make a difference? Our guesses: No and No.
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