FORBES | Ouch! On the face of it, things look bad for the oil market. That’s an easy conclusion to make from the epic dive crude oil futures prices took on Monday. But the bigger story is far more complicated than most would like to admit. Most of the issue revolves around oil delivery rules and storage capacity issues specific to a single location in Oklahoma. Futures prices for light sweet crude oil, which is commonly known as West Texas Intermediate, plunged approximately 40% Monday to around $11 a barrel, a 20-year low. For sure, that's a headline-grabbing event. It's made fascinating by the fact that the drop in the futures prices over a few hours came just days after an agreement from OPEC (The Organization of the Petroleum Exporting Countries) to slash crude production by a whopping 10% of global output. Significant production cuts would tend to lift prices, and yet the opposite happened.
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