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Showing posts from May 8, 2011

Mr. Global Casino meet Ms. Reality

JPMorgan forecasts oil supply to fall short of demand by 600,000 barrels a day during the third quarter, even with the assumption that the Organization of Petroleum Exporting Countries increases output by 1.2 million barrels a day in coming months. The gap could narrow to 300,000 barrels a day by the fourth quarter, assuming  Saudi Arabia increases production to 9.5 million barrels a day,  Angola  to 1.7 million and  Iraq  to 3 million, though “that may prove a stretch,” the bank said. Output from those three OPEC countries in March was 8.66 million, 1.56 million and 2.69 million barrels a day, respectively, it said. As I pointed out in the April 30 blog , the runaway Global Casino speculates on everything on the Earth and distorts all prices everywhere.  Mr. Casino is totally divorced from Ms. Reality, and his current bets on a lower oil price are as imaginary as his bets to the contrary. Earthlings beware! These speculative bets and brazen market manipulations can only last for s