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Catastrophic results for Japan and the US credit crunch gets much worse.

Eurodollar University

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Introduction

On Monday, which was July 3rd, Saudi Arabia followed through with its threat to reduce production even further. They had announced back in June that they were going to cut production in July by 1 million barrels per day to try to stabilize oil prices. On Friday, the futures curve prices started to go up a little bit and the futures curves moved out of Contango into backwardation. So what the Saudis are doing is telling us that they're going to match supply with demand.

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