OPEC slash production by 2.2 millions barrels a day

UPDATE 2

Oil dripped further to USD35.62…. freefall eh…

I am still betting it will not last… I hope I am wrong

UPDATE 1

Oil dropped to USD39.91 after OPEC announced production cut. Apparently two million barrels less a day is not scaring the market to stocking up..

ORIGINAL POST
Dramatic cut barely moved oil above USD44 per barrel

Not everyone is enjoying cheap oil. OPEC members decided on a huge production cut to stop oil price from sliding on the downward graph of the global economy.

The 2.2 barrel pinch is the largest on record but it was not enough to convince the market and speculators that supply will better match spiraling demand

At the current price 11 of Opec’s 14 members will face budget deficits so they are desperate to help prop it up and are aiming at USD60 per barrel to remain comfortable.

Apparently current production is so mismatched to demand that some suppliers are are having to keep their oil in tankers because buyers are not ready to receive them.

According to reports, the slight blip in price is due to the fact that Opec’s decision has been expected by the market and they have priced it in.

Expect further, possibly more dramatic production cuts. Some observers expect that production may be cut by 4 million barrels by the end of January jsut to keep oil prices nearer the USD50 per barrel