Wednesday, December 17, 2008

Oil Production Being Slashed

As I predicted two months ago, OPEC met Monday, and decided to cut the production of oil in an effort to increase the price. They will slash 2.2 million barrels PER DAY - the largest production cut in history!

We may or may not feel any immediate effect, but it's pretty certain the price will rise, since demand is not going down, but production is. OPEC wants the price to increase to approximately $100/barrel (almost twice what it is now). So, as suggested two months ago, if you heat with fuel, y'all may want to fill your tanks pretty soon if you have not done so already. If the price goes up, you win. If it does not, you lose nothing because you would need the fuel, anyway.

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