Crude Oil price fall could result in a production cut

The Nymex Crude Oil futures contract closed a bit higher than the day before at $90.06, from $88.96, although the chart is fairly clear-the crude oil trend is downward. We are sticking to our idea that a price of $80 is not a silly forecast. Oil economist Jim Williams points out that $80 may be a number OPEC has in mind, too—anything under it (like $60, another number being tossed around in market chatter) could result in a production cut. Sure enough, the price rose to $90.99 overnight but couldn’t break the round number $91.00, and has fallen back to $88.99 at 12:16 pm GMT.

Gold Futures is another story. It is now moving independently of the dollar exchange rate, to a close of $878.40, near the high of $883.00.

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Barbara Rockefeller - Forex Trading Reports