Despite a sizeable cutback in oil production by OPEC and several non-OPEC nations and a subsequent rise in price, oil prices are testing 5-month lows. The initial rise in price caused US fracking activity to increase, negating the OPEC cutback. Moreover, total US gasoline demand is noticeably shrinking. As a result, US crude inventories keep growing and are at 550 million barrels, an 80-year high! OPEC members are having nightmares.
Elliot F. Eisenberg, Ph.D.