[Money Morning Editor’s Note: Frequent Money Morning contributor Dr. Kent Moors – the editor of the “Energy Advantage” advisory service – is an advisor to six of the world’s Top 10 oil companies and a consultant to some of the world’s largest oil-producing nations. He’s also one of the best-connected global-energy experts on the planet. So with tomorrow’s OPEC meeting looming, read what Dr. Moors has to say about the direction of oil prices. It’s not what OPEC – or Wall Street – would have us believe.]
Everything You Need to Know About Tomorrow’s OPEC Meeting
Crude dropped for the second straight day yesterday (Tuesday) after Saudi Arabia made it clear that the Organization of the Petroleum Exporting Countries (OPEC) will leave its production targets unchanged at its meeting tomorrow (Thursday). Crude oil for November delivery fell 54 cents a barrel – or 0.7% – to finish at $81.67 a barrel on the New York Mercantile Exchange yesterday. Even with yesterday’s decline, oil prices are up 11% over the past 12 months.
Speaking in advance of tomorrow’s OPEC meeting in Vienna, Saudi Oil Minister Ali al-Naimi said that prices between $70 and $80 a barrel are “ideal,” and noted that the market is “very well-balanced” right now. In a related development, Sanford C. Bernstein & Co. LLC slashed its oil-price forecasts for both next year and 2012, and attributed the new viewpoint to big stockpiles.
But this only provides you with part of the picture. And it’ll lead you to the wrong conclusions.
So here’s the proverbial “rest of the story” – including everything you need to know about tomorrow’s OPEC meeting.
….read more HERE