Quote:
Originally Posted by marketsmart
what sucks is that opec said last night that they have a 3 mill bpd excess, so its the speculators and the weak dollar that are driving up the prices..
a lot of experts are scratching their heads because the current situation of oil prices defies all economic models of supply and demand...
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While Opec "says" they have excess capacity, they never deliver on it.. last time the Saudis said they had extra capacity and no one wanted to buy it, it was acutally heavy/sour oil as opposed to light/sweet... Opec said they were going to increase production over the next few months (or maybe it was in the fall, can't remember)... BUT at the same time production from some areas are going to be under maintenance and so there won't be any extra oil... Once of the reasons the speculators are going nuts is because they believe Opec is playing a shell game and actually doesn't have any surplus capacity of light/sweet which is what most everyone wants... Those same speculators think $200 oil is a very definate possibilty.