Here Is Why the OPEC Cuts Aren't That Important for Oil Prices

OPEC's production cuts took effect on Jan. 1, propelling oil to its highest level in a year and a half on Tuesday. But economist and Real Money contributor Steve Blitz said demand impacts prices more so than supply. He said the reason oil is north of $50 a barrel instead of $20 is because of an improving global economic picture. On Tuesday, reports surfaced that Oman and Kuwait hinted that the December production cuts would be implemented. Crude prices gained some 45% last year.