Production cut for oil..???

[Paul R. Smith]

I've been playing house husband today and thought I overheard a headline that gas was going to be going up again due to violence in the mideast(this one's getting old) and a PRODUCTION CUT. I would assume this is an OPEC deal. Anyway can the market handle prices going north of where they are now? Why the cut I thought there was a shortage in the near term.

can anyone confirm this?

 

[General Lee]

I thought there was no cut, and no raise in production. Still 27 million barrels a day from OPEC.



Bye Bye--General Lee

 

[TOGA]

The General's right again. They're keeping it the same because the OPEC leaders decided that they were comfortable with crude in the $45-55/barrel range. Seriously, that's how they said it. The only way they will increase production is if they are led to believe that overall demand would drop if they didn't. With China and India's economies just lighting off, that seems highly unlikely to occur. Goody.