How much will OPEC Cut production?
OPEC meets in just three weeks and with the large fall in oil expect to hear more chatter of possible OPEC production cuts for 2019. The problem with the fall in oil price is that it is not just a supply problem. It is also due to falling demand for oil as global GDP slumps. See here. Reuters have reported that OPEC are now muting the idea of cutting production by 1.4m bpd which is up from the 1m bpd previously mentioned.
For now the 55.00 handle has held providing support. The underside of the 4 hr trend line held price yesterday and is containing it today. Price will need to get above if that, or else 55.00 is in for another test.
