Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

The Next Oil Spike is Sooner Than You Think

|Includes: The United States Oil ETF, LP (USO)

With crude topping $63 yesterday, a near double from the low, the next super spike in prices may come sooner than you think. Despite a long history of lying and cheating, OPEC has managed to cut production by 3.3 million barrels a day from last year’s peak, thanks largely to the heroic efforts of Saudi Arabia. The International Energy Agency says that thanks to collapsing prices and the disappearance of financing, investment in new production facilities fell 15-20% last year. That has taken the number of rigs in use globally down 32% to 2,055. OPEC countries have cancelled or delayed 35 large projects, taking a potential 5.5 million barrels a day of potential production off the market. One of America’s largest suppliers, Mexico, will flip from an exporter to a net importer in the next five years. While Obama’s new pronouncements about green energy are laudable, so far, it is just that, talk, without funding and any ability to generate a significant impact on the market for a decade. One speech doesn’t slow down the five ultra large crude carriers headed our way every day. There hasn’t been a whisper about conservation. Read the writing on the wall. If and when we do get a real economic recovery, watch out! $200, here we come!