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OPEC did cut by 2.2 million bopd. Since this didn't seem to have much effect, there is now speculation that OPEC will have a further meeting in Jan. at which they will lower production still further. When you combine this likelihood with the Obama stimulus planned for enactment in Jan., you would seem to get a high likelihood that oil will rally in the near future. Your green shaded area on the oil chart would seem to confirm this analysis. If you can think of a good reason why this is not likely, I would be very intrested to hear it.
Dec 18 12:51 pm
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All Comments by David White »Oil Breaks Below $38; Bespoke's Commodity Snapshot (12/18/08) [View article]