Oil Prices Continue to Fall in Wake of OPEC’s Meeting

OPEC’s decision to not decide on production cuts until its meeting on December 17th weighed down the price of oil throughout the day today.  Crude oil lost 9.3% to close just below $50 a barrel on NYMEX this afternoon.  Heating oil had fallen by 6% at the end of trading.

Although production levels remaining unchanged for the time being had a negative effect on prices today, statements by representatives of OPEC hinted at a likely production cut at the December meeting.  From Bloomberg.com: “The group will trim production at its next meeting, its secretary general said today. Slowing growth means demand will be ‘much lower’ than expected a month ago, OPEC said after a Nov. 29 gathering.”

HEAT USA price experts predicted a large drop in retail prices tomorrow, reflecting today’s market decline.

HEAT USA Price Report
Evening projection (for Tuesday’s average heating oil price per gallon): DOWN $0.10