COMMENTARY: The Next Move in Oil Is up to OPEC

On the 25th of May, two vital events will occur: first, OPEC will be meeting to decide what to do about oil production, and the second and most important event will be my 49th wedding anniversary.  The anniversary will be between my wife and me, so here I will concentrate on the OPEC meeting.

OPEC decided last fall that after the first of the year, they were going to cut the production of crude oil to reduce the global oversupply. Their hope was that reducing the supply would allow prices to rise. So the question is, “How did things turn out for them?” The current benchmark price is $46.43, down from its most recent high of just under $54.00 a barrel. The chart below shows the volatility of the price and why this current price of crude is important.  With OPEC meeting in two weeks, this price level is dangerous,…



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