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“OPEC officials and industry analysts say that the cartel has been producing below its ceiling of 28 million barrels a day for months because there simply hasn't been demand for more.”

ROFL!!! This would be much funnier if the oil scammers in this country weren’t ripping us off the whole summer!

Here’s the “conundrum” for OPEC: If they cut output, they increase spare production capacity (above the shadow capacity that is already there under 28m), which will decrease the terror premium (which is, in part, based on there being no spare capacity), which is still 20% or more of the total cost of oil.

Check out this master of the obvious:

“The market had factored in a lot of negative possibilities, such as hurricanes in the U.S., into the price of oil, but those events have not played out," said Hisakazu Amano, who helps oversee $16 billion at T&D Asset Management Co. in Tokyo. "The drop in the crude price will be bad for oil-related companies' earnings."

Come on, they give this guy $16b to play with???

Here’s another genius in hindsight:

“The drop in oil, gold and other raw materials since May is signaling an end to the five-year bull market in commodities as global growth slows and demand falls”, according to Stephen Roach, the New York-based chief global economist at Morgan Stanley, the world's biggest securities firm.

Guy-who-comes-back-from-summer-vacation-on-the-wrong-side-of-trades says what?

Oh and if you like thinking you can trust your broker, do not read this.

Source: As Oil Prices Slide the Pundits are Playing it Slick