Crude Tumbles to End Month

October 31, 2016 10:47AM CDT

In a move that really shouldn’t surprise anyone, OPEC once again failed to reach an agreement on any kind for a production freeze. Rumors of a potential cut had been circulating for weeks now, and a few of the leaders of the OPEC and non OPEC producers have come out in favor of cutting back a bit in an effort to support prices. While these pushes to cut production pop up every so often, it is very rare that any policy changes actually come to fruition. As a result, crude oil is currently down $2 on the day (4.15%) to the lowest levels we’ve seen in just over a month. Evidently, Iraq and Iran have been the most vocal about their opposition to the freeze. Hope is not lost for the bulls however, as there was an agreement to revisit the topic prior to their next scheduled OPEC get together in the end of November. While I have little faith anything will be accomplished at that point or in the meeting prior, OPEC has said they would have a more detailed proposal in place for the next meeting, so there is a still a chance something goes through.

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