It was announced today that Russia Saudi Arabia will be freezing oil production. I am not sure exactly what that means, but at least it sounds like some good news for oil. The price of oil has been in a free fall for a while. Though this has been good news at the gas pump, it is been horrible news for the oil industry as a whole. With oil hovering around $30 a barrel, the oil industry has been decimated. This is especially true hear in the United States. Thousands of workers have been laid off, and we are just beginning to see a wave of bankruptcies throughout the industry. With this announcement from Russia and Saudi Arabia maybe we have seen the bottom in oil prices. Unfortunately for the economy here in the United States it is too late to keep us from what I believe will be a severe recession. Though this is positive news, and we will see a rally in the stock markets today, it is too late for the oil sector.
What do you think?