OPEC Credibility Questioned by Traders – Selling the Rallies
Posted by zmann on October 6, 2006
Oil has gone from popping up on any new rumor, to encountering heavy selling on each short lived rally. The latest rumor is that while there’s no official deal to cut production, something should be forthcoming Monday. I’ll believe when I see it but a 4% cut won’t have much of an impact and Saudi is the only way to increase the size of the current 1 mm bopd cut. As alway more later. My bias remains short and medium term negative.