OPEC confirms cut ... market yawns

OPEC President Edmund Daukoru confirmed that the cartel will cut production by 1 million barrels a day. In reaction the price of crude is up all of 2 cents. OPEC blew it. The member nations contradicted each other for days about this cut, confusing traders until they couldn't care less. Now, it might take more dramatic cuts to get oil moving higher.

Meanwhile, T. Boone Pickens was just on CNBC saying we'll see $70 oil before we see $50 oil. He's a big believer in Peak Oil, so he and I have something in common.

In any case, we should see oil trade in a range for awhile. I believe it is oversold, but $55 isn't out of the question. There should be overhead resistance around $65.

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