Monday, September 19, 2005

Oil bubble

This tells me that even OPEC is sensing a bubble in oil prices:
OPEC oil producers on Sunday wavered over a supply increase that would aim to allay consumer country concerns about energy security after Hurricane Katrina pushed crude over $70 a barrel.
Some said they were reluctant to sanction additional crude when global refining is too stretched to process more.

"The market should rest assured that whatever it needs is there. Before that there is no need to do anything," said Nigerian Oil Minister Edmund Daukoru.

Supply is up. Demand is down. Capacity is tight. Bubble.

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