Oil: We can't count on OPEC any longer

[dan_s]

The northern Iraqi city of Mosul is burning, as insurgents from an offshoot of al-Qaeda take control while Iraqi security forces reportedly leave behind their military uniforms and flee the region. It’s an ugly situation, and it’s unlikely to turn around soon, said a former senior U.S. military commander in Iraq.

Read: http://m.washingtonpost.com/news/checkp ... asons-why/

IMO the chance of Iraq, Iran or Libya being able to add more oil supply the global market are nil. The region is heading to total meltdown and Washington seems helpless. Situation in Iraq could go from bad to worse very quickly.

On of our members called me today and asked me what could happen that would make oil prices go down during the 2nd half of this year. I said the only thing that could make that happen would be if peace breaks out in the Middle East. It appears Saudi Arabia is unable to help much.

[dan_s]

"Analysts believe OPEC nations, other than Saudi Arabia, are producing as much as they possibly can, so they aren’t in a position to boost output substantially to meet a spike in demand or avert another unexpected production outage." < Exactly what I have been say on this board for years. - Dan

Full article: http://www.theglobeandmail.com/report-o ... e19146636/

[dan_s]

In after-hours market, WTI moved up another $0.78 to $107.31/bbl.