>>>The Saudis et al have just ordered the biggest cutback in oil production history. I think the poor oil producing folks are addicted to money. Enough is enough! It's time to use the money for Detroit to re-tool the plants for electric cars. Let's turn off the money tap that leads to Arabia.
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>>>http://www.msnbc.msn.com/id/28274997/
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>>OPEC doesn't have pricing power in this environment.
>They chose to cut production and that will create the shortage,The shortage will drive the price up and they will reap the benefit. Driving up the price is the reason for the cut. So, we can deduce, from that information, that the 'speculators' mentioned, last time the price went through the roof, are also Saudis.

It is not that simple. First of all, OPEC has compliance issue; many members are very quick to declare something, but their actual moves could differ a bit. Many OPEC countries have difficult budget issues due to extravagant social and foreign policies and oil is their only source; therefore they would prefer other OPEC members to cut production while they could collect more dollars selling own full oil output. Another factor is consumption that getting depressed, and this process is still in ascendancy (re: China slowdown).