OPEC did exactly what it promised in Vienna, slashing oil output by 1.5 million barrels a day, but the market shrugged off the cartel’s biggest production cut in nearly two years and crude futures fell to $63 in New York.
With global demand for oil retrenching in both developed and developing economies, OPEC’s output cut was seen as too little, too late to stanch the fall in prices, Bloomberg reports. “OPEC has offered the market all the ammunition they had,” said Robert Laughlin, senior broker at MF Global Ltd. in London. “With the bearish economic outlook and manufacturing in freefall this accord is not good enough. ”>>>MORE
Friday, October 24, 2008
Oil Ink: OPEC Slashes Output, Crude Price Falls
From Environmental Capital: