Market reaction to the OPEC production cut Cliff refers to below?

But oil futures fell more than 3.5 percent, to $41.99 a barrel, on Wednesday, as the market focused on the dire state of the global economy and many experts doubted that OPEC would manage to carry out its promises, leaving markets oversupplied in the face of falling demand.
“There is still a boatload of people that are hugely skeptical,” said Jan Stuart, an energy analyst at UBS.

As well they might be. The last time oil prices fell precipitously, OPEC found its cartel had no discipline at all. Producers scrambled to get the best share they could of a declining market value.

Meanwhile, this price fall is severely hurting the countries Cliff names as hostile to us. Venezuela in particular has been hit, as Chavez has based much of his foreign policy demagoguery on giving away oil and his domestic demagoguery on oil-financed welfare programs. Long may this continue.

I have to say that a time of financial chaos is the last time to consider replacing now-affordable oil with more expensive alternatives. Energy Secretary-designate, Steven Chu, for instance, wants to raise gas prices to $8 a gallon in order to make alternatives more competitive. Yet prices at that level haven’t worked in Europe to stimulate alternatives – just smaller, less safe vehicles.