Amid America's economic woes, the oil industry is plotting its next move. The prices of many commodity goods are rising at an alarming rate. Commodity goods tend to increase in price when the dollar falls, or inflation goes up. With this trend in mind, prices will spiral upwards, and demand will plummet even further. So, OPEC had to meet and decide if they should cut the supply of oil, or let the market decide the demand. Their decision was to leave production unchanged. This could be beneficial for OPEC, because it would keep supply high, and in theory, increase the demand. But currently, demand is declining, and that will be the deciding factor for later action regarding OPEC. On a similar note, the cost of copper is increasing in a way parallel to oil. Since copper is linked to construction, it reflects the collapse of the housing market. With this in mind, oil and copper are two products to watch for the next quarter, in order to asses just how deep will the housing and transportation crises reach.
-Adam
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