OPEC has decided to leave production quota's unchanged.
Well, whoopty-freaking-do.
OPEC doesn't matter anymore. Only Saudi Arabia matters. OPEC needs to appear to matter a little longer, and for whatever reason, that seems to be OK with KSA. What was OPEC going to do? Announce a 2 million barrel per day increase effective immediately? Then what? Wouldn't they actually have to deliver?
My bet is that there is little to no spare capacity, including KSA. I didn't say for sure... that's just what I think is the case, and I believe this because prices are high enough to encourage production from any and every quarter... forget WTI, Brent is almost $120. That is serious incentive. I am long again (actually more short puts than straight long, but I am long, too).
QE3 is not coming anytime soon... Oil production has little left to increase with... but there is certainly a great deal more $100 oil around than we thought in 2005 - 2008 as it turns out.
The Oil slog continues...