Fast moving times in the oil markets Wednesday where OPEC’s apparent decision to hold production steady is boosting oil prices .
Oil CL1N reversed earlier losses to gain $1.74 to $100.83 a barrel in recent trading.
Going into the meeting expectations had been high that the cartel would boost production, a move sought by Saudi Arabia.
But the members of the cartel apparently wouldn’t go along.
Only late Tuesday, Bernanke was citing expectations of lower energy prices as a relatively hopeful sign on inflation:
…if the prices of energy and other commodities stabilize in ranges near current levels, as futures markets and many forecasters predict, the upward impetus to overall price inflation will wane and the recent increase in inflation will prove transitory.
But Saudi Arabia could go ahead unilaterally and raise production.
Such a move might signal further dissent ion within the cartel and ultimately prove bearish for oil in the longer term as more and more member state go their own ways on production.
