Thursday, March 17, 2005

Powerless hydra

The many-headed hydra called OPEC is sucking in dollars at an ever-increasing rate as oil prices reach new highs. But the hydra says publicly that it wants to increase production and lower prices. When OPEC announced yesterday that it will increase production, oil prices hit an all-time high. Now a day later, oil is hitting another new high.

Either oil traders don't believe OPEC will raise production or they don't believe they can. My money's on the latter. Can anyone say "peak world oil production?"

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