OPEC's 'mixed signals' make sense after all

Only in the whimsical world of OPEC can a decision to allow greater production also be a production cut. The Organization of Petroleum Exporting Countries' Aug. 24 decision to cut output while hiking quotas was met with some dismay by analysts who had already factored quota cuts into their forecasting models. Some of these analysts indignantly complained that the "confusing" decision sends mixed signals to the market.To which the only response can be: Well, duh.Setting aside the obvious question of whether traders ever could respond rationally to OPEC moves anyway, sending a mixed signal is exactly the right thing to do, from the organization's standpoint. Factoring in current OPE...

Why Register?

Non-subscribers can only view whitepapers by providing name, home and email address, phone number and other information and comment on/rate articles.

Why Subscribe?

Oil & Gas Journal subscribers with login credentials can access these premium features of OGJ Online:

  • Current Issue – an html version of the current week's issue of Oil & Gas Journal.
  • Past Issues – An Electronic OGJ Archive. A keyword-searchable archive of all issues of Oil & Gas Journal dating back to 1990; also searchable by issue date.
  • Market Journal – a weekly round-up of the oil and gas markets, with observations from leading analysts.
  • Editor's Perspective – a short article of insight and opinion by the Editor of Oil & Gas Journal.
  • OGJ Industry Stats – quick access to current industry statistics from Oil & Gas Journal.
  • OGJ Survey Downloads - quick access to exclusive reports from Oil & Gas Journal.


Subscriber Help or Subscribe

Oil & Gas Journal Subscribers: Have your subscription number (from the mailing label on the cover of your Oil & Gas Journal) and e-mail address ready to set up your online account through Customer Service Assistant.

If you're not an Oil & Gas Journal subscriber, start a subscription and gain access to the subscriber areas of OGJ Online now.

Stay Connected