What would OPEC production cut mean for oil prices?

October 20th, 2008 at 12:57pm Thomas V. Bona

OPEC is talking about cutting oil production to stop the slide in prices, with suggestions that it could be in the neighborhood of 1 to 2 million barrels per day.

This while, “Deutsche Bank AG lowered its 2009 crude-oil price estimate by 35 percent to $60 a barrel, citing the possibility of a `’major world recession.’” Analysts say if OPEC limits its cut to 1 million, oil could still fall below $60.

The always entertaining Phil Flynn thinks OPEC can’t push prices up above $80 a barrel  for a sustainable length of time, unless the economy really turns around or the weather does something funky.

“Long term oil is headed to $50 but with the swings we could see sizeable upswings along the way,” Flynn said.

Entry Filed under: Fuel price musings