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Topic: OPEC says no need to increase oil production

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UGoGirl Posted – 12/5/2007 10:10:49 AM | show profile
...because they say oil inventories are just fine. But historically, oil inventories are low (and also total global crude oil production has not increased since May 2005 despite much much higher oil prices and higher demand).

US crude stocks are now about 313 million barrels, about 8 percent down from the same time last year. In addition, days of supply from OECD oil inventories from 1995 to 2000 was about 80 to 95 days, compared to about 50 days now.

So why are they not increasing production, despite repeated calls from the US and OECD to increase oil production? Either they've decided they really like $90/barrel oil (and which oil exporting country wouldn't) and they're willing to roll the dice, or they recognize they are experience geological constraints that will not enable to produce more oil for any sustained period of time.
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