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Updated - OPEC is going to let Oil free fall. - It's time to stash cash: Portfolio manager

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Seeing / Hearing a lot of people who work in the oil fields are going to get laid off by the end of this week.

OPEC considering emergency action on oil prices



Nigeria's top oil official and OPEC President Emmanuel Kachikwu said the cartel is considering an emergency meeting, perhaps as soon as next month. At issue is whether OPEC would agree to cut production, a move that could help stop the crude price freefall.


Oil prices fell toward $30 a barrel early on Tuesday, having plunged by 16% in 2016 alone, but steadied later to trade little changed on the day.

Many OPEC countries are still making money at these prices but others are losing -- Nigeria's production costs are estimated at about $31 a barrel, for example.

And all, including Saudi Arabia, are suffering a huge squeeze on government revenues.

Kachikwu said most OPEC members were watching their economies "being shattered," and something had to give.

"We need to... see how we can balance the need to protect our market share with the need for the survival of the business itself, and survival of the countries."



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It's time to stash cash: Portfolio manager



Stocks have been roiled in recent weeks, with markets around the world seeing an extended sell-off to start the year. In the U.S., major indexes have already given up all fourth-quarter gains in the first trading days of the year.

Because of the increased volatility, portfolio manager Chad Morganlander said his firm, Washington Crossing Advisors of Stifel Nicolaus, has been increasing cash exposure over the last three months.

"It is an asset class and you should utilize it in an environment like this, where global growth is decelerating at a rapid pace as well as commodities markets across the board are also hitting lower lows," Morganlander said Monday on CNBC's "Trading Nation."

In one of his 2016 predictions, Blackstone investor Byron Wien also noted that investors will resort to cash amid global market turmoil.

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