Wry & Dry

The oil price just won't go above $52

The chart says it all:

US crude

The oil price is now down about 12% from its $52 peak.  So much for the rally.

Trouble is OPEC's output hit an estimated all-time high of 33.82 million barrels a day in October, even as members Iran, Nigeria, Libya and Iraq are still seeking an exemption from production cuts in any agreement that may be reached on November 30.

Never mind the long history of OPEC members cheating and pumping more even when they do agree on output limits.  If OPEC members can't freeze the oil price, a world of non-OPEC members certainly have no reason to.

The credit bubble of 2005-2015 enabled so much over-investment in this space. Sunk costs now in, everyone that can pump has reason to continue.