Is There Really An Oversupply In Oil?
ByHi Folks,
I read today that “Opec to cut output” and “Oil prices rebound” because they thought that there is an oversupply of oil and ‘is a necessary move to keep the market from collapsing”.
I think they are worried about their own oil market and not the world market in general, since a collapse of oil price will hurt the oil producing country the most (mainly OPEC, since it’s their decision).
Oh and is there really an oversupply of oil?
No way!
If there was really an oversupply, we would be seeing US$30 a barrel instead of a US$100 a barrel currently.
I think the real reason is that they want the oil price to remain as high as possible while they milk the most out of their remaining oil reserves. Period.
Not a very good news for consumers like us.
Cheers,
James