Originally Posted by rickholio

I'd suggest that OPEC has less 'decided' to cap and more that they are incapable of producing a substantial increase in output. They're running pretty close to full tilt (98% capacity, as I recall although I can't find a citation at the moment) and there are serious and growing concerns about how much oil they actually have left (the 'technical reserves') versus the amount they claim to be able to deliver (the 'political reserves').

It's strange to watch all these pundits on financial channels and shows, the same ones who believe so fervently in the 'invisible hand', not seeing its work where it's most obvious: Oil is expensive because speculators anticipate shortage, driving demand up... and due to the relatively inelastic market at these prices, oil could well go up a long way before there's a serious throttling back of consumption. Perhaps they typify what T.S.Elliot claimed, that ?humankind cannot stand very much reality.?