OPEC Loves Money

Oil is back over $60 this morning. Looks like the governments in OPEC really love to keep that money rolling in. It seems that since the price of oil has fallen in the $60’s OPEC has seen the pressure come off the Fed to raise rates. They have also noticed that the US economy is slowing and not heading into a recession, so why not capitalize and keep oil in the $60’s? So this morning OPEC announced they would be cutting production by 1,000,000 barrels. The news caused the price of oil to rise above $60 and the futures to turn negative.

On a positive note, September retail sales rose 3.8% which was slightly lower than the forecast 3.9% but it looks like the markets will take this as a bit of good news. So today’s battle on the markets will be between the effect of oil prices and the retail sales.

I look to SCUR to add to its gains from yesterday as it gets ready for another attempt to clear $7.00. I think that CLRK might stay in the high 18’s for a while before it heads towards $20.