OPECalypse

Welcome back. I hope everyone had a nice Thanksgiving.

We’re now in December which is traditionally the best month for the market. The S&P 500 has gained ground during the last six Decembers.

Friday was one of the more unusual days in recent market history. The reason was that the price for oil crashed. West Texas crude dropped from $73.47 per barrel to $65.99 in one day. Remember that oil was going for $107 in June. Oil is down again today.

Oil and other energy stocks dropped as well. Other commodities such as silver, copper and natural gas were also down sharply. Last week, OPEC decided against slowing production to halt oil’s slide. That’s a big deal. There’s a lot of speculation that OPEC doesn’t mind seeing oil drop for the time being since it will hurt U.S. shale production. The question is, how long will OPEC stand by and watch this? Some of the OPEC are certainly not happy.

Posted by on December 1st, 2014 at 10:09 am


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