Wyoming Economist Says Wait And See About Oil Prices
A senior Wyoming State Economist is urging people not to get too excited yet about a recent surge in crude oil prices.
Jim Robinson says that while it's good to see the price per barrel get above $50 dollars per barrel, it may not mean much over the long term unless OPEC can actually reduce production enough to shrink a glut of oil on the world market.
Robinson says OPEC "has had these discussions before, but it hasn't been followed by action. So that is what we need to see."
During a meeting in Vienna this week OPEC agreed to cut production, causing the price of oil to go over the $50 a barrel mark. But there are questions about some of the specifics of the cuts and whether or not the member nations will actually adhere to the agreement.
Robinson says if that doesn't happen it means the same market factors that have been keeping crude oil prices around $45 a barrel will remain in play.
He points out the fact that the average price of West Texas intermediate crude through the month of November was $45.39 per barrel.
It only surged above the $50 per barrel mark in the last few days upon the announcement of the OPEC production cuts.
Robinson has said previously the price of crude would have to get and stay above $50 per barrel for some time before it would begin to revive the industry in Wyoming.