Opeckers Cut Production, Dow Could Have a Rough Day

The Opeckers are panicked about having their flying carpets pulled out from under them:

VIENNA (Reuters) - An emergency OPEC meeting on Friday reached swift agreement to chop production by 1.5 million barrels per day (bpd) as a first step toward halting a deep oil price slide.

International benchmark U.S. crude has slumped by well over 50 percent from a record high of $147.27 hit in July. On Friday, it fell again to just over $63 a barrel.

"The decision was straightforward," Saudi Oil Minister Ali al-Naimi said after the meeting.

"OPEC will do whatever is necessary to balance oil markets."

Funny, they didn't seem so excited about "balancing the oil market" when oil was being run up by speculators to $147 a barrel.

And the Dow futures are down over 500 points this morning, meaning the Dow will probably open in a dive. The question is whether anybody will finally jump in and start taking advantage of the bargains out there. Given the herd mentality on Wall Street these day, I wouldn't count on it.