[lbo-talk] OPEC reportedly agrees to production cut

Marvin Gandall marvgandall at videotron.ca
Wed Oct 11 10:37:20 PDT 2006


Doug wrote:

[MG]>> - particularly the timing of such a move - even though
>> the latter is where US influence on the oil market has historically been
>> most evident. The OPEC cuts are slated to begin at the end of October so
>> that the impact of any price bounce will be felt after the election,
>
> If the announced cutbacks are credible and large, then the oil market
> will react almost instantaneously, not with a lag of weeks or months.
========================== Good point. But so far it seems fears of an economic slowdown are still weighing on the market, which is why the price has barely moved despite the NK test and the OPEC rumours. If these fears dissipate and there is a pre-winter seasonal bounce and the cuts take hold, the oil price could start to climb again after the election, and, boy, will that add grist to the mills of those who think it is all being orchestrated by Rove and Paulson!



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