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
ALERT: Today Could Be Your Best Shot At Early Retirement (Sponsored)
If you want to retire before 65, pay attention. Study after study has shown that the longer you stay invested, the better your chances at an early retirement.
Every day that goes by without saving and investing for tomorrow means more to earn and save later. Don’t waste any more time and get started with Robinhood today. The app makes it easy to buy and sell stocks, mutual funds, trade options, and even cryptocurrencies.
Sign up today — click here to start your journey.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.