Despite the fact OPEC announced a 2.2 million per day drop in oil production yesterday, oil traded around $36 a barrel today. The last time oil closed so low as July 2004.
This just proves further that OPEC needs to listen to what analysts are saying instead of thinking “short term.” The cut in production let everyone know just how low the global demand for oil has gotten.
U.S. oil supplies were also up 500,000 barrels, which is four times more than investors were anticipating.