OPEC says it could not reach an agreement to raise production (because there is no need to increase production, the market is already flooded w/over-abundance), and instantly oil returns to over $100 a barrel and still rising.
http://money.cnn.com/2011/06/08/markets/opec_oil_production/index.htm?iid=HP_LN
Can anyone use any of the excuses we have been tracking (see the DS Excuse Tracker)to explain this? Did the supply of oil just plummet at the time of this press release? Did world demand just suddenly increase ten fold within minutes? Was there a currency devaluation of dramatic proportions within minutes of this press release? Did a new war just break out within minutes of this press release?
The answer is no. No such coincidence. No such excuse.
Pure speculation on Wall Street.....with the threat of raised production not to occur, let the speculation and buying of oil shares (without having to take actual possession of the purchases) begin.
Article:
NEW YORK (CNNMoney) -- Oil prices breached the $100-a-barrel mark Wednesday after OPEC said it could not reach an agreement about raising crude production.
U.S. crude jumped $1.70, or 1.7%, to $100.81 a barrel. Oil prices were trading down about $1 just before the OPEC announcement. The price of brent crude - the European benchmark - rose 1.2% to $118.20 a barrel.
OPEC's quarterly meeting was widely watched by analysts. The cartel had been under intense pressure to raise production as oil prices approached $120 a barrel last month.
But cartel members were unable to reach a decision to do that, with at least three members reportedly holding steadfast against any production increase. OPEC ministers said they'll take another three months before considering any increase in oil output, according to CNN.
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