Despite OPEC’s production cut yesterday, oil prices keep plummeting and oil-related exchange traded funds (ETFs) are reaching new lows.
What’s going on?
One reason is skepticism that OPEC actually will cut production, based on how large it is and past history.
These countries need the money. Another reason is that the markets may have already priced in a cut in anticipation, reports Pablo Gorondi for the Associated Press.
OPEC’s next meeting may be in January, and one expert says he wouldn’t be surprised by a 3 million barrel per day rate cut then. The next official meeting is in March, though.