China Has Something to Tell OPEC: Oil Prices Have Fallen Too Far

  • Decision to suspend fuel cuts puts $38 floor under oil prices
  • OPEC effectively abandoned crude production quota on Dec. 4

Is OPEC Fueling the Global Oil Glut?

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The world’s biggest energy consumer may have a message for OPEC.

China’s decision to suspend fuel price cuts as crude continues its decline is sending a signal to the Organization of Petroleum Exporting Countries that prices are too low, according to a report from Sanford C. Bernstein & Co. The move gives oil a price floor around $38, according to the analysis.