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They did it. OPEC announced a cut of 500,000 barrels of oil a day. Not a bad move since we're buying less and less of the stuff. I mentioned this on Tuesday when the trade deficit came in. Everyone was saying the lower price resulted in the lower trade deficit. Not true at all. The price drop came in the month prior. What we did see was a marked decrease in overall purchases of oil here in the U.S. It was a drop of 11 million barrels a month. So, the cut in 500,000 barrels a day is in line with this drop in demand.

This should go far to prop up the price. OPEC wants $60 a barrel. I've heard that price target bantered around the internet enough that it's legit. But, I'm on a fence post as to wether or not they'll get it.... or, keep it, I should say. I wouldn't be surprised to see a drop in the price of oil down to a range of about $40 - $50.00 a barrel as punters make an exit to the door. The only thorn in that theory is that the U.S. economy is doing far better than most are giving it credit to. So, perhaps demand will prop up the price going forward. Let's wait and see.

Source: OPEC Cuts Production: Crude Prices May Still Fall