In the midst of commodities dropping like a stone, OPEC is having a meeting to decrease oil production.
But it might be OPEC can do nothing as hedge funds continue to dump assets:
Hedge funds saw a record $210 billion drop in assets under management during the third quarter as investors redeemed an unprecedented amount of money from the industry after poor performance, according to a survey released Friday
So, for all those who deny speculators has anything to do with the dramatic price increase in oil this summer, the coincidence of hedge funds liquefying their assets and the incredible downward drop is yet another amazing synergistic moment?
It is now questioned if OPEC can even do anything about the price decline no matter how much they slash oil production:
With speculators fleeing, the cartel is going to have to build a floor under oil prices through disciplined production cuts. This isn't a group known for discipline, however. And given the wheezing global economy, OPEC has only an outside chance of pushing prices back up to $100 a barrel even if they manage to significantly slash output
If it is all just physical supply and demand shouldn't this production slash stop the price slide?
Looks like we need to revisit Commodities Speculators.