Last week’s meeting did nothing to lower supplies on a long term basis. OPEC is trying to bring down production levels by some 1.2 million barrels. They accomplished 900k per day production cuts over the past six months. However, these cuts did nothing to really lift prices.
Now, production cuts were not extended to a significant level. The economy is slowing modestly and this will crimp demand.
I am looking to short a little more oil. I sold the day before the meeting. I can see oil pushing to below $40.00 over the next few weeks. It will not be a straight line downward. Instead, I think it is going to be pretty choppy so I need to be vigilant on this.