Why OPEC’s decision has yet to make a difference

SAN FRANCISCO (MarketWatch) — More than a week after the Organization of the Petroleum Exporting Countries said it’s cutting members’ oil production in a move to ease supply levels, prices for crude have barely budged.

Traders had hoped an output cut would remedy the steep drop in prices, which had fallen around 10% from the $66-a-barrel level they stood at when the cartel met on Sept. 11 and left its production quota unchanged.

At best, the latest cut to output has merely helped stabilize prices.

“While OPEC’s influence on the oil markets has dwindled over the last several years, there is no question that they still have a considerable impact on the price of oil,” said Emanuel Balarie, senior market strategist at Wisdom Financial.

MartketWatch