It now appears that OPEC will not lower production despite the entreaties from the US and other big oil consuming countries. OPEC ministers said that rising prices had little to do with supply. They believe that somewhere out there in the wide world powerful speculators are pushing oil prices up.
"This speculation has no link to the stable market fundamentals, which do not need any action," the Saudi oil minister said, according to Reuters.
The argument seems a bit thin. Even with speculation, it is hard to believe that oil prices would stay high for very long if supply was increased, even a bit. But, $100 oil is good for OPEC, not matter what the cause.
Douglas A. McIntyre