OPEC is looking at a price in the range of $75 a barrel
OPEC is looking at a price in the range of $75 a barrel; while the market is still suggesting that prices could stay below $40. As of Friday, prices still settled between below $40 and a little bit above despite the announcement that OPEC is taking 4.2 million barrels out of the market....analysts believe that it is in the interest of the organisation’s members to comply with the cut or they may have themselves to blame if they pump more volume and demand continues to drop.
OPEC might as well get naked, jump in front a full length mirror, and speedbag their dick. They have zero control over prices as proved from 1982-1999 and as being proved again today.
Speculators with 30:1 leverage drove prices through the roof and created new valuation metrics to "justify" the price (peak oil, "China is HUNGRY for diesel", etc.) just like the real estate bubble (crappy mortgages are not crap if they are geographically diversified) and dot com bubbles (revenue scaling is fast, unprecedented and limitless). Same song, third verse, and when the music stopped they were handed their asses.
Oil was 10 bucks in 1999. Global "domestic product" has not increased four fold since then to drive prices commensurately. True market fundamentals are starting to return.
OPEC should help not just by cutting production but buying in the open market like how the FED is buying treasuries. That is the only way the drive this artificially up because the trend is spiraling down. If OPEC wants to save their azz, they better start buying and be a market participant and not just take our dollars and spend on building fake islands. Those days are over.