Oil fell below $59 a barrel

Discussion in 'Trading' started by tradebenz, Oct 24, 2006.

  1. Oil fell below $59 a barrel on Monday as traders doubted all OPEC members would follow Saudi Arabia's lead to curb output under an agreement reached last week.

    Top world oil exporter Saudi Arabia has informed Asian and US customers it will cut output by 380,000 barrels per day from November 1, following an OPEC deal. But OPEC ministers' lack of unity on how to implement the cuts before the talks has left uncertainty in traders' minds on how the group will implement the curbs.

    The market is highly skeptical that OPEC will deliver the promised cuts in crude oil production. This will give some relief to the markets but this is temporary action from the OPEC members and they never ready to sacrifice their profits in future too.
  2. Put your money where your mouth is.