Wednesday, October 27, 2010

OPEC cartel cuts supplies

September 10, 2008

Oil prices fell again this morning down to $103. OPEC announced that it was cutting production by some 500,000 barrels a day in an effort to prevent prices from dropping below the $100   mark. For the moment this worked and prices rebounded back up to $105. The cartel's behaviour should be duly noted throughout the world. We shall see if it is successful in preventing prices from breaking the $100 barrier as global trade and economic activity continue to slump.

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