By Micah HalpernI've Been Thinking:
Oil hit a three week high - settling at about $64 a barrel.
The Saudis are most pleased with this rise in oil prices. But they needed to increase the price of oil.
So to counter the huge influx of US oil into the market, especially from US shale which has effectively decreased the price of oil over the past few months, the Saudis severely limited production.
The Saudis have restricted their output. They have been producing less oil daily than even the official cap which is placed on them by OPEC. Their objective was to artificially decrease the supply and increase the demand.
Most oil experts are saying that oil will remain between $55 and $75 per barrel over the next 6 months. There is no chance of either a drop or increase in price unless supply changes.
The US is flooding the market with as much oil as possible to drive the price of oil down. Who knows what the Saudis have in mind.
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