OPEC Cuts Production– Is There a Message?

OPEC announced today a reduction of about 1 million bpd to stem falling oil prices. Saudi Arabia stated that it has been acting responsibly by increasing production to moderate oil prices. Now that prices have “moderated” to $43 (33.7 euros) per barrel as compared to $31 (26.7 euros) per barrel last November, up 39% in dollars and 26% in euros, action is warranted to prevent a price collapse. Download here