OPEC Agrees to Largest Production Cut Ever
Submitted by WSN_Staff on Wed, 12/17/2008 - 14:07.
OPEC agreed today to reduce production by 2.2 million barrels a day, the largest cut ever done by OPEC, they are doing everything to prevent oil prices from falling.
“We want non-OPEC countries to contribute, and not just benefit from the impact of our cuts,” Chakib Khelil, OPEC’s current president, said after the meeting, which was held under tight security in the coastal Algerian town of Oran. “It’s in their own interest as well as in ours.”
Mr. Khelil said the group wanted to “eliminate” an overhang of commercial oil inventories, which now stand at 57 days of supplies, down to 52 days, and aimed to push up prices to $70 to $80 a barrel.
“We have five days of excessive stocks that could really lead to a collapse in prices,” Mr. Khelil said during a chaotic and confused news conference after the meeting.
The ETFs that will be most impacted by these cuts are the DIG (long oil stocks) and the DUG (short oil stocks), for now, they both are not moving:
| ETF | Ticker | Quote Change | ETF Market Cap | ||
| ProShares Ultra Oil & Gas (ETF) | DIG | 31.32 | -0.12 | 569.37M | |
| ProShares UltraShort Oil & Gas (ETF) | DUG | 28.78 | +0.28 | 724.35M | |
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