First, I am seeing signs of panic both in the markets and here at agoracom. Such an emotion in the market usually signals the approach of a bottom.

Secondly, people in general complain about a reduction in OPEC output. All companies in all industries, as pricing nears the marginal cost of production, take production off line. Why should OPEC do any less. When one has a finite and diminishing resource on which your economy is dependent, only a darn fool would produce at a level which will lead to increased consumption at lower prices. OPEC is an oil bank. It makes no sense to sell more for less when your long term problem is a diminishing resource!

Brian