Will the price of oil stop falling the minute OPEC cuts production? What specific news or preidctions about production cuts have we heard in the last week?Will the price of oil stop falling the minute OPEC cuts production?
I have heard nothing, but I have not been paying as much attention as I have in the past.
A couple of weeks ago OPEC held an emergency meeting and no one with a pulse thought they would increase or stand pat with production. They agreed to cut by 1.5 million a day (or that is what I recall) and the day they announced that oil went up by about $2.70/barrel (again based on my recall), but that cut did not sate the bear.
Oil is now a demand driven market.
No, oil does not change the minute OPEC makes a production decision, market participants guess what OPEC is going to do prior to their meetings and factor those hunches into the buy/sell decisions. If OPEC acts in a surprising fashion then you might see a price move the day after an OPEC announcement.
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