OPEC Gets It Right

This column was originally published on RealMoney on Dec. 15 at 10:29 a.m. EST. It's being republished as a bonus for TheStreet.com readers. For more information about subscribing to RealMoney, please click here.

This time, OPEC may have it right.

The oil cartel's decision Thursday to announce the possibility of a 500,000-barrel-per-day production cut beginning in February may turn out to be moot. It may also be one of OPEC's best price-management jobs ever.

The Organization of Petroleum Exporting Countries (of which one member, Indonesia, is actually a net importer of crude oil) said it would cut collective production on Feb. 1 if oil remained below $60 a barrel. That price -- measured by the OPEC crude basket, which is usually $4 to $5 below the Nymex price -- appears to be the cartel's new litmus test. ...