August 19, 2016
SURGE — The price of an OPEC barrel has shot up six dollars in just 10 days, prompting all sorts of talk about reviving prices. But, as you can see from the chart above, that doesn’t get the price back anywhere near what it was just two months ago, let alone the one-hundred-plus dollars that had prevailed just a few years ago. The upsurge is sparked by a few remarks Saudi officials have made about resuming talks on a production freeze. But most insiders say a freeze on OPEC production at the current very high level is not restraint. Furthermore, the Saudis have said over and over again that there will be no freeze until Iran joins—which it isn’t doing.