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11.28.2014 OPEC Holds Firm Bookmark

The political game continues folks. Last night OPEC held the line, just as we suggested they would. We didn't feel they'd cut production to halt the price slide, because they've got a handful of reasons not to. First off they don't really like the competition from the US shale producers. They don't like the production from the Russians either. They also like to supply China with cheap oil, because the Saud's and China are becoming more buddy-buddy all the time. Besides, there's been a lot of bickering between the Saud's and the US lately, and poking at stick at the "petro-dollar" feels good to them also.
The political game continues folks. Last night OPEC held the line, just as we suggested they would. We didn't feel they'd cut production to halt the price slide, because they've got a handful of reasons not to. First off they don't really like the competition from the US shale producers. They don't like the production from the Russians either. They also like to supply China with cheap oil, because the Saud's and China are becoming more buddy-buddy all the time. Besides, there's been a lot of bickering between the Saud's and the US lately, and poking at stick at the "petro-dollar" feels good to them also.

Is this good or bad? For the individual it's great! I love filling up at 2.69 instead of 3.70. But a lot of our economy is built on oil futures, oil bonds, oil loans, etc. This drop has been so big and so fast, you can bet there's things "blowing up" over it. So the answer is that it's good for "us" but it could be causing some major pain for some big players.

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