Despite that lower oil prices can help while filling up the tank or paying the electric bill, a movement down in oil can also be a welcome sight for any investment or trader portfolio. Oil prices appear to be ready to make a leg down this week on a number of factors that are coming to the forefront. These factors include OPEC’s meeting this week, supply issues, the dollar, and weak data that could signal demand issues. 
Oil prices have been hovering between the upper-90s to lower-100s for the last month with small swings between $96 – $104. Yet, the prices may be ready to collapse this week. One of the key reasons for the swing down may be the OPEC meeting in Vienna this week. The annual meeting for the Middle Eastern countries that dominate around 40% of the world’s oil supply is one of the most important meetings in years with developments of unrest in Libya, Yemen, Qatar, and even Saudi Arabia. 
The expectations are that there will be no change in output; however, individual countries are expected to push for higher output. Saudi Prince Alaweed has been quoted as saying that his nation wants oil at $70-$80 per barrel to help curb movements towards alternative energy. The country has raised output by 1M barrels already this month to cover Libya’s absence. At the meeting, Nigeria, Qatar, and the UAE among others may discuss their own plans to raise their output.
If OPEC countries want to bring down prices and are willing to raise supply this will help to bring down prices. The IEA has said that OPEC needs to raise output to bring down prices, and it would be good for a decline if expectations ring true.
On the supply side argument, in addition to OPEC, TransCanada announced that they are restarting their Keystone oil pipeline after US approval after it was shut down last week when 10 barrels leaked in northern Kansas. The crude inventories report this past Wednesday reflected an increase an oil much above expectations and the turnaround in restarting the pipeline was ahead of schedule. More supply should mean…lower prices (should is the key word). With the problem solved, it alleviates worry about supply coming into Cushing.…
