The OPEC Cuts And Crude Decline
by Frank S.
OPEC got together in Vienna, and the results were awful for crude. It has posted a weekly loss and a lot of the sentiment states it has to do with OPEC cuts. If those cuts weren't made, crude would have stayed as is at the least.
How is this going to hamper the future of crude?
There is a lot of discussion on the market as to what direction this is going to go, but the decline doesn't look to be stopping anytime soon. China continues to require oil, but it is slowing down with time. If that trend continues, it is only going to make things worse for crude and its value.
The connection between OPEC cuts and crude decline are there, and it is going to become more and more evident with time.
Most are looking for the Chinese to see how they react, but if things don't remain "as is," it is going to reach a point where the value will fall significantly, and it might be hard to stop.
Economists are watching as things unfold and have noted China is reluctant to spend as much as it used to. There is a desire to grow internally.