More commentary: Some oil majors: Chevron Corp. (NYSE:CVX), ExxonMobil Corp. (NYSE:XOM), Royal Dutch Shell (NYSE:RDS.A), Total S.A. (NYSE:TOT), EnCana Corp. (NYSE:ECA). ETF: Oil Service HOLDRs ETF (NYSEARCA:OIH)
Summary: November crude contracts closed at $61.45/barrel yesterday, after dropping below $60 during intraday trading (Intraday prices fell after BP (NYSE: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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