NEW YORK (TheStreet) -- Nov. 27 wasn't just Thanksgiving Day, it also marked the all-important OPEC meeting. The group's decision not to cut production sent the price of crude swirling lower, currently to around $67 per barrel.
The dramatic move lower is somewhat surprising, Stutland Volatility's Luke Rahbari told TheStreet TV's Jill Malandrino. It seems like the market should have more accurately priced in this event, he said.
OPEC will also no longer subsidize other non-OPEC members and other oil producing entities. OPEC members want prices to rise, but are unwilling to cut production.
Rahbari explained that due to many OPEC members' lower production costs, they can afford to wait out these low prices. On the flip side, many Canadian and U.S. shale producing companies cannot allow crude to fall too low.
Below $45 to $48 per barrel, most shale oil producing companies would be forced to cut production, since it would no longer be profitable for them to pump.
For that reason, the $45 to $48 per barrel level should be a significant price support, he said.
It's totally possible that oil prices will continue to stagnate over the coming year and even head lower. Also, the rising U.S. dollar negatively impacts crude oil prices, Rahbari concluded.