Oil prices to remain at current lower levels

OPEC recently announced that they will continue to keep pumping as much oil as needed, despite a $13 drop in oil prices this month. In fact, they are willing to let inventories in large consuming countries rise to 56 days forward demand cover - higher than the normal 52 days.

What It Means:

Oil industry analysts were afraid that OPEC would vote to cut production to increase prices at its December meeting. Continued lower prices means a relief for inflation and current account deficits, and a boost to consumer spending during the important Holiday season.

Action Steps:

Now may be a good time to add commodities to your portfolio, if you didn't do it when I suggested it a few weeks ago. Make sure you ask your broker for mutual funds that include oil producing companies, not just the refineries.