Why Oil Is Plunging: The Other Part Of The "Secret Deal" Be

[jb2257]

I'd like to hear what Dan has to say about that article. I'm pretty skeptical of zerohedge articles, but that's a scary thought.

[dan_s]

Opec's report said the more than $20-a-barrel price fall since the end of June reflected weak demand and ample supply, but it echoed the view of core Gulf Opec members in saying winter demand would revive the market.

I agree that demand will pick up when winter weather arrives. It ALWAYS does.

IMHO OPEC will cut production quotas at their November meeting, if not before. Several OPEC members are "feeling the pain" at today's price.

The idea of Saudi Arabia doing this to "punish" Russia has some merit, but it also hurts them. I doubt the Kingdom wants to dip into their own cash reserves to fund their social programs.

They may also allow oil prices to stay low for awhile to help the European economy, which in turn will increase demand for oil.