OPEC production: Where is it headed?
Not too long ago (not even two weeks ago), oil prices were so high that everyone thought $100 oil could be a reality any minute. OPEC officials made noises about increasing oil production this month. Now, however, this week's OPEC meeting deciding production is likely to see no such decision. With oil prices dramatically sliding to less than $88 a barrel, Reuters reports that OPEC is likely to sit on production rate for now:
'We believe they are unlikely to do anything,' said Mike Wittner, global head of oil research at Societe Generale. 'They have the same concerns as the market — the possibility of weakening economic growth led by the United States.'
And what does that mean for Big Oil? Well, Exxon (XOM), Chevron (CVX) and ConocoPhillips (COP) are all down. Interestingly, companies that advertise their environmentally-friendly programs, BP (BP) and Statoil (STO), are up. Are we finally refusing to be fooled by the roller coaster ride of oil prices? Are we finally getting ready to move away from dependency on oil?
Disclosure: I do not invest in any of the companies listed above, though I am considering STO.
Photo:Lukask, Creative Commons, Flickr