Oil Prices Will Rise Tomorrow
OPEC plans to raise output by 500,000 barrels a day according to a Bloomberg report. In the perverse anti-rational oil markets, this will likely lead to an increase in oil prices which will be justified on the theory that increased production is a sign of increasing demand for oil.
“There is agreement among all of us that we need to increase production by 500,000 barrels a day or more,” the Kuwaiti minister and OPEC president, Sheikh Ahmad Fahd al-Sabah, told reporters in Isfahan, Iran, today. A committee of three ministers, including Sheikh Ahmad, recommended the increase begin May 1, he said.