OPEC is not an organization that likes to leave money on the table. And, it has done so for far too long, at least according to a number of its members.
Recently, banks in Saudi Arabia and Kuwait had to be bailed out by their governments. Iran claims it cannot balance it budget unless crude is at $90 a barrel.
When OPEC cut production by over a million barrels a day last week, crude prices actually fell, a humiliating experience for countries in the cartel who are used to moving oil prices.
The next meeting of OPEC is scheduled for December, but with the price of oil still stuck well under $70, production may be cut again very soon.
According to Reuters, "OPEC Secretary General Abdullah al-Badri said if prices continued to fall, OPEC would call another extra meeting."
With demand slipping in the major consuming nations and an astonishingly low consumer confidence index in the US, look for OPEC to cut, and cut sharply within the next two weeks. It should not be a shock if the cartel takes another two million barrels off the market.
OPEC needs oil prices back at $80, or higher.
Douglas A. McIntyre
Take This Retirement Quiz To Get Matched With A Financial Advisor (Sponsored)
Take the quiz below to get matched with a financial advisor today.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Take the retirement quiz right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
