Wednesday OPEC announced a record 2.2MM bbl a day cut on top of the recent 2MM bbl a day cut in an attempt to shore up falling Crude Oil prices.
With the additional cut OPEC tried to give maximum market impact to its action, making a confusing statement in which it said it was cutting production by 4.2m b/d from its September output level of 29.045MM bbl a day according to the Financial Times (London).
Crude Oil fell below $40bbl on the news, and for the first time in more than 4 years as OPEC failed to convince traders that the glut in Crude Oil (on the demand destruction) will diminish plus the US government said supplies climbed for the 11th time in 12 weeks.
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