Amid the hub bub around the announcement of OPEC’s largest oil production cuts ever,  I wonder:  How will these massive cuts in oil production affect the U.S. Economy?

The price of oil has dropped nearly 70% since July when the price hit its peak.  The lower prices have definitely served to prop up the U.S. Economy in recent months.  I think consumers can more easily justify their loose spending habits with the price of oil so low. But will OPEC’s newly announced production cuts drive up the price of oil again and bring the U.S. Economy to its knees?

I do think these oil production cuts will serve to drive up the price of oil from where it is now, to a better equilibrium around $70 to $80 per barrel.  This will surely stifle growth of the U.S. Economy in Q1 and into Q2 but what other effects will be imminent?

Any further thoughts on this?