In ten days, the members of OPEC will meet at their annual midyear meeting where Russia is expected to push for an output increase of more than one million barrels per day. If this happens, analysts estimate that the world will have only two million barrels per day of excess capacity. With global demand currently at 100 million barrels per day, if demand jumped up two million barrels, then all the world’s production would be consumed for the first time in history. With the world adding between one and a half and two million barrels per day of demand each year, it appears that oil markets will be very tight in the near future. WTI ended the day at $66.04 per barrel.
Texas Railroad Commissioner