RE:RE:Thoughts On EIA ReportBargainHunter88 wrote: Even without the freeze, there is not much more Saudis and Russia can produce. Oil supply decline is happening globally except the gulf states. It's just here in North America we focus more on US supply declines. The Saudis are rapidly running out of spare capacity by increasing production, which jeaporidize the oil supply as its 2 million boed spare capacity is traditionally used to cushion any supply outages in the world. If the Saudis does not freeze this time, we may be more likely to see oil price shock rather than prolonged decline in oil price. Just my opinion.
Fundamentally the freeze probably does nothing. Price wise it would put a bottom on oil prices. That 800k barrels a day less of excess supply has come mainly for US demand increase. That's pretty staggering. It's like a 4 or 5% demand increase. They only consume 20% of the worlds oil, yet they increased demand by 800K a day year over year.