Commodity Daily News

Oil Supply and Production Cuts Spark Increased Speculation

The price of Crude Oil saw a rather sharp increase yesterday after investors began speculating on the possibility of a coordinated production cut between OPEC and Russia. However, with results not dissimilar from the piracy off the coast of Somalia, the price of Crude Oil continues to slide after a short-lived $5.00 increase in price proved to not be strong enough to reverse the downward trend.

Starting today's trading near the $50 mark, the price of Oil appears to have leveled off and waits for further speculation about supply levels - with today's announcement of U.S. Crude Oil Inventories - as well as further information regarding this potential production cut from two giant Oil producing entities. Investors would be wise to pay close attention to the USD today as it will likely be the primary market mover.