OPEC Plans to Cut Supply as Oil Prices Head Toward $50 a Barrel

By Grant Smith and Margot Habiby
Oct. 20 (Bloomberg) -- OPEC, the supplier of more than 40 percent of the world's oil, plans to cut output for the first time in almost two years as the worst financial crisis since the 1930s sends crude toward $50 a barrel. Options contracts that allow holders to sell 1,000 barrels of oil for $50 each by December closed at $280 on the Nymex on Oct. 17, up from $10 on Oct. 3."

TMT MAN: There is a lot of leveraged possitions in this trade, by hedgefunds etc. whom at this point do not know how far the oilprice can fall. The only way to "hedge" their possitions, is to buy this contract. Please comment on this!

Nymex - Crude Oil, Light Sweet, Dec 2008, Key Reversal: Potential +27% within 30 days.

Nymex - Crude Oil, Light Sweet, Dec 2008: Click to enhance

Analysts: 1 million barrel OPEC cut not enough

CAIRO, Egypt (AP) -- A crude oil production cut of even 1 million barrels per day at OPEC's upcoming emergency meeting is unlikely to reverse slumping prices in the short term, analysts said Sunday, amid mounting calls by several cartel members to take action to keep prices at the $80 per barrel level.......

OPEC seen keeping oil prices around $70-$90/bbl

By Luke Pachymuthu
DUBAI (Reuters) - OPEC will likely implement a production cut when it meets for an emergency meeting in Vienna on Friday, as it tries to stabilise global crude oil prices at around $70 to $90 a barrel, analysts said.......

OPEC may cut output by 1 to 3mln bpd: Iran

TEHRAN (AFP) – Iran said on Sunday that OPEC will consider an output cut of one to three million barrels per day (bpd) of oil in its upcoming meeting, the Mehr news agency reported.......

Oil rallies over expectations of OPEC cut

NEW YORK— Oil prices recovered some ground Friday, rallying above $71 a barrel on speculation that OPEC could slash output in an effort to stop crude’s downward spiral. But pump prices kept falling and appeared poised to drop below $3 a gallon nationally — a level not seen in eight months. .......

Houston stands on the front line of energy policy

“The first thing that you have to realize is that we are very dependent on coal, crude oil and natural gas and that’s not going to change quickly,” he said........