OPEC to Reduce amount of barrels produced a day

[DreamfulSpirit]

http://money.aol.com/news/articles/_...pec-cut/278735

I knew the possibility of gas prices going up was going to happen sooner than later....

[AGDee]

The article says that despite the reductions in production, oil prices continue to go down.

" "Oil prices will (easily) fall below $40 per barrel in the next year, and could tumble all the way to $30," Behravesh said in a research note. "With the economic outlook deteriorating by the day, futures markets for commodities have not priced in the full extent of the 'demand destruction' taking place."
Doubts also remain about the willingness of some OPEC members to adhere to price-boosting production quotas.
"OPEC has lacked credibility for a long time on discipline," said Gerard Rigby, energy analyst at Fuel First Consulting in Sydney. "OPEC is going to have to show they are committed to the cut, that it's not just talk."

[Elephant Walk]

Originally Posted by DreamfulSpirit

http://money.aol.com/news/articles/_...pec-cut/278735

I knew the possibility of gas prices going up was going to happen sooner than later....

As the above said...

Oil prices went down.

Plus, the dollar went down. Which is interesting.

[Kevin]

No way do they stick to the quotas. If anything, they produce more because they need the cash. Iran especially.

[PhiGam]

As Kevin said, we'll see if they actually cut production.

[DaemonSeid]

The five-month slide in gasoline prices has come to an abrupt halt, with gasoline rising by several cents in recent days amid indicators that the national average could jump to $2 a gallon or higher this spring.

A broad shift in the psychology of the oil market seems to be under way. Oil prices are up more than 40 percent since they bottomed out just below $33 a barrel on Dec. 19. The reversal, after months of declines, suggests that production cuts by the OPEC cartel may be having an effect, along with growing tensions in the Middle East and the sentiment by traders that the precipitous drop in prices went too far.

For six days in a row, drivers have been paying a few more cents a gallon than they did before Christmas. The change has been almost imperceptible for drivers who remember prices soaring above $4 a gallon last summer.

But if the price of gasoline continues rising, it may become another headache for consumers worried about their jobs and the dropping value of their homes and investments.

Oil prices are up about 25 percent in the last week alone, in part because of the escalating conflict between Israel and Hamas in Gaza. Rising oil prices have helped push the wholesale price of gasoline up by 40 percent since Dec. 24, leading to predictions by energy experts that retail gasoline prices will spike by as much as 25 percent in coming weeks.

"A lot of people are talking about dollar-a-gallon gasoline, when the wholesale market seems to be pointing to $2 a gallon," said Tom Kloza, chief oil analyst at the Oil Price Information Service. As of Monday, regular gasoline was selling for $1.67 a gallon, on average, up from a recent low of $1.62 on Dec. 30.


http://finance.yahoo.com/family-home/article/106398/As-Prices-Rise,-Some-See-$2-Gas