In my opinion, the sell off in oil futures these past few days was caused by the mass exodus of short term speculators looking for $80 oil. IMO nothing has changed in the supply demand realities to justify a major reduction (ie below $58 say) in oil prices from market forces. What does the board think?
Production in existing Saudi fields declining at rate of 500,000 bbl/day these days.Saudis say they want to increase output by 1 million bbl/day over todays level to 12 million bbl/day in 3 yrs. Means they need to find 1.5 million bbl/day new oil. Most oil experts thinks that is a pipe dream, propaganda or both.