OPEC is Cutting But Not Fast Enough

Sunday, October 11, 2009

OPEC is cutting but not fast ebnough to catch up with the US demand destruction:

"The Organization of Petroleum Exporting Countries cut crude-oil output by nearly 1.3 million barrels a day in January in an attempt to tame the supply glut that is anchoring prices near 40 a barrel.

But as the cartel tightened the taps, crude-oil inventories in the U.S. were increasing by 700,000 to 900,000 barrels a day. That growth rate, the most seen in the month of January in 85 years and the highest in any month since at least October 2002, is a setback to OPEC's efforts." in the Wall Street Journal

Oil futures are trading higher today with the USO (United States Oil Fund), the most liquid oil ETF rising 3%.


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