It seems investors have ignored Friday’s oil production cuts as the price of light, sweet crude for December delivery slid roughly a dollar to $63.24 a barrel on the NYME on Monday. Commenting on the anomaly, was Darren Horowitz, analyst for Raymond James & Associates. When asked why OPEC’s production cuts had seemingly little effect, he stated: “There are larger, long-term problems plaguing the market that a short-term production cut cannot overshadow, including softening demand, institutional unwinding and the credit crunch.” It becomes increasingly feasible to imagine that the $50 oil predicted by some experts is not far-off on the horizon.
Let us hear your thoughts below:
