Oil production is probably close to its peak level currently. At best supply can stay the same, but is more likely to drop. Global oil demand, though, has been growing rapidly since the Credit Crisis. Demand is likely to exceed supply in 2017 and probably 2018. Prices will then rise significantly. The OPEC has had its June 2nd meeting and the cartel has once again failed to come to an agreement to limit oil production. No consensus was expected except for a brief moment just before the meeting. The cartel did discuss a proposal floated by the new Saudi Arabian energy minister, Khalid al-Falih, that would limit OPEC oil output to between 31.8 and 32.5 million barrels per day (bpd). The dysfunctional group couldn’t even agree to this very minimal drop in production. OPEC is currently pumping 32.77 million bpd. Despite the bearish news of no change in policy, […]