Under normal conditions, that would be telling OPEC that a cut is necessary. With Nigeria losing about half a million barrels of production it makes it quite hard for them to justify it.
More Quotes from Kevin Norrish:
Iran matters more than is currently priced in and Iran's external relations remain the key wild card. We continue to see the situation as representing the major upside risk for oil prices this year.Kevin Norrish
The morbidity of non-OPEC supply is a factor that is fuelling the rise in prices. Russian output growth has decelerated...with the year on year growth in output for July a sharp downshift from the...growth rate achieved in July 2004. The IEA sees Russian supply rebounding strongly in the rest of the year and into 2006. Their forecast is for Russian output to grow by 390,000 bpd in 2006, a very good recovery from the growth seen in the most recent monthly Russian output data. In all, the IEA view seems somewhat optimistic...
Kevin Norrish
If you start to layer in people's concerns and anxieties about what's happening in various parts of the world, there is a strong chance we'll have another test of the all-time highs, quite possibly sooner rather than later.
Kevin Norrish
After such a slow 2005 for Chinese oil demand an acceleration in growth looks highly likely in 2006 and this will exert further pressure on oil supply and prices.
Kevin Norrish
My impression is that the price action is more to do with the data flow.
Kevin Norrish
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