Oil prices are down today on traders' beliefs that the OPEC cuts will not stick. I agree, however, with Gary Ross, from PIRA Energy Group, who was on CNBC this morning explaining that it takes a couple months before the effects of cuts take place. As winter approaches, we will enter into the peak demand season just as the cuts begin to take effect. That said, for now the traders are correct as WTI Cushing Spot price, according to Bloomberg.com has dropped $1.10 to $57.40.
Traders Do Not Believe OPEC Cuts Will Stick
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I previously opined the OPEC would stick to its production cuts (see OPEC Cuts Production 1.2 MBPD), yet many (most?) do not believe OPEC. I have written before that traders were skeptical (see Traders Do Not Believe OPEC Cuts... Read More
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