More commentary: Some oil majors: Chevron Corp. (CVX), ExxonMobil Corp. (XOM), Royal Dutch Shell (RDS.A), Total S.A. (TOT), EnCana Corp. (ECA). ETF: Oil Service HOLDRs ETF (OIH)
Summary: November crude contracts closed at $61.45/barrel yesterday, after dropping below $60 during intraday trading (Intraday prices fell after BP (BP) announced that it will increase production at its Prudhoe Bay’s oil field.). OPEC recently agreed to leave its maximum output at 28mm barrels/day, but said that they would "respond rapidly to any developments which might jeopardize their interests." Analysts interpret that statement as a threat from OPEC to cut production if oil falls below the $55-$60 range. In other commodity markets, sugar futures hit a 13 month low, natural gas fell to their lowest price in almost three years and coffee bucked the trend, closing at its highest level in the past two and a half weeks.
Related links: Full WSJ article • The Significance of Oil's Drop Under $60 • Oil vs. Dow: 1987 Deja Vu All Over Again? • OPEC: Lemonade Cartel • Commodities' Downward Trend: Beginning of the End, or Merely a Speed Bump?
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