I've commented before that I like watching CNBC on Wednesdays as they release US oil and gas storage numbers. (I have learned to embrace my geekdoms.)
Today it was exciting! Well, sort of...
The government released numbers that the oil and gas in storage was much higher than expected. Immediately the price of oil dropped almost $2. Less than ten minutes later OPEC announced that they were cutting production by 4.2 million barrels per day. Instantly the price of oil went up $3 because OPEC was only expected to cut production by 2 million barrels.
4 million barrels, wow!
Then investors read the fine print. the 4.2 million included 2 million they had already cut. So the real cut is basically the 2 million that was expected. The price of oil fell back $2.
All in the span of 20 minutes.
Update:
Traders believe OPEC is blowing smoke. Oil closed below $40 today for the first time in four years.
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