OPEC has decided to raise oil production by 2% to meet winter demand.
According to The New York Times: "OPEC representatives said they were aware that excessively high prices might put a dent on a world economy that is already suffering from a weak housing market in the United States." But oil only ticked down slightly and still traded above $77.
In all probability, oil traders see the move as symbolic at best. The market still faces potential disruptions in production in Mexico, Venezuela, and Nigeria. And, a number of refineries are currently off-line for refurbishment. In addition, it is still hurricane season in the Gulf of Mexico.
In other words, OPEC did not do anyone a favor.
Douglas A. McIntyre