Real Crude Prices Higher Than Nymex Suggests

If members of the Organization of Petroleum Exporting Countries don’t increase output, and “assuming normal weather conditions this winter, total petroleum inventories would fall by over 150 million barrels, or 6.5%, by the end of the year, which would push prices to $95/bbl without a demand response,” Goldman analysts said in their report.

“Nobody is looking for additional crude now,” Naimi contends, but that’s true because OPEC and others have only extra heavy, high-sulfur sour crude – not the desired light, sweet grade – to offer.

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