"The Organization of Petroleum Exporting Countries agreed last week to boost its output quota by 500,000 barrels a day, or 1.9 percent. Members are already producing above their quotas."
"Joe says traders talked about that concept all last week (and remember this was the week that OPEC announced it was boosting production by 500,000 barrels a day) and the market proceeded to take oil to a new intraday high at $57.62 a barrel. "
Does anyone take these OPEC announcements seriously?
Wallstreet seems to doubt the authenticity of these promised increases.
It's a little difficult to believe that any producer anywhere is holding back production at these prices.
The sad truth is that the world is currently producing the most oil it is capable of.
With only a fraction of new fields scheduled to come online in the future needed to replace known depletion in existing fields, how can anyone doubt that we are seeing the global peak of hydrocarbon production right now?
This should be headline news around the globe every day.
The predictions of Simmons & Campbell et al, have seemingly materialized, and the nations of the world will soon have no choice but to acknowledge this reality.
OPEC members have misrepresented reserve figures.
New oil fields have failed to materialize as promised.
We are failing to replace oil lost to known depletion in existing fields.
It seems clear that 80 something mbpd is the most oil we will ever produce.
Peak Oil is now.