Options Wonderland

[samaelrocks]

Enjoying watching this unfold:

The Saudi King says oil should be $75 per barrel. I'm certain he ran that through supply/demand models to get to that price. However, even when they cut "some" production, speculators kept the price in the $50's.

http://news.yahoo.com/s/ap/20081129/ap_on_re_mi_ea/ml_opec_meeting

Now, OPEC is delaying cutting production until they meet again.

http://news.yahoo.com/s/nm/20081201/bs_nm/us_markets_oil

They continue to defend a $75 per barrel price but I'm not sure they can afford to cut production right now. IMO, if they cut production, the price won't sky rocket the way speculators allowed it to just a few months ago.

Also, every month, new high mileage cars are being sold and old junkers are being trashed. Give it 10 more years and OPEC will be tripping over themselves to sell us oil for $30 per barrel.

Then consider the U.S. being able to tap this:

http://www.americanfreepress.net/html/u_s__has_massive_oil.html

LOL! What's a Middle Eastern King to do?