My expectation for a price increase is fairly limited, one way or another we are likely to see some production cuts. If we did see prices go up then OPEC would increase production and/or U.S. producers would increase theirs as well. Ric Spooner More Quotes by Ric Spooner More Quotes From Ric Spooner The deadline is likely to be extended so that makes it a little less at the cutting edge of thinking right now, but we have rallied a fair way so the market is a bit vulnerable to increases in supply. Ric Spooner most-read-articles On a 24 hour basis we'll see some volatility depending on what happens with Greece. Ric Spooner business If we were to see prices $5-$10 higher, that would attract new production, so the upside is capped. Ric Spooner most-read-articles When we start to see real production cuts in the United States, I suspect more upside to oil prices, but the market will find it hard to push U.S. prices much higher than mid-$60s and low-$70s for Brent, because even with U.S. production cuts the global oil market will remain well supplied. Ric Spooner energy The harsh reality of last night's build in inventory is starting to set in on oil prices. Ric Spooner energy The weaker U.S. dollar was supportive of commodity prices but another big build in inventory might mean the upside on oil prices is limited until there is some turnaround in U.S. oil production. Ric Spooner energy News of China' rate cut should help buyer mood this morning, compensating for a weak lead from the US market, however, while news of lower borrowing costs will help support equity valuations and be seen as a positive for commodity demand, market response may be limited. In some senses this rate cut is a technical response to the fact that lower inflation is making real borrowing costs more expensive in China. Ric Spooner company-news The previous gains reflected the fact that the market is looking forward to more production cuts coming with declines in rig counts. Ric Spooner business
