OPEC Blues

The president of the Organization of Petroleum Exporting Countries, Chakib Khelil, on Sunday said the cartel's recently announced production cut "will take a long time to take hold" and shore up prices because demand for oil remains below OPEC's revised production level, Agence France-Presse reported. (WSJ, 11/3/2008, emphasis mine)

What I hear: production cut on Oct. 24th didn't work, we don't expect it to work "anytime soon," and our main tool for manipulating oil prices, production quotas, are effectively useless because demand is lower than even our decreased quotas.