JPMorgan: As Market Yawns At OPEC Production Cuts, Watch Price of Oil Drop Further

As the price of oil dropped significantly Thursday, moving from a high near $52 into the $48 region, JPMorgan says the downdraft is likely to be reflective of OPEC production cuts priced into the market. While WTI is higher in mid-afternoon trading, the price might ultimately find a gravitational pull lower, the report noted. How much impact do OPEC production cuts actually have on the price of oil? When OPEC production cuts were announced, extending the agreement to keep oil off the market by nine months, it was not only greeted by markets with a yawn. In fact, selling ultimately…