Crude Oil Rises on U.S. Inventory Decline as OPEC Boosts Quotas

“We are going to make new all-time highs,” said Phil Flynn, vice president of risk management with Alaron Trading Corp. in Chicago. “I think we will jump to the $62 area by July 4 and then pull back a bit.”

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“The (OPEC) quotas have become meaningless,” said Julian Lee, an analyst at the Centre for Global Energy Studies, a London-based consulting company. “In addition to Venezuela and Iran, Indonesia is well below its quota, perhaps half a million barrels per day or more. As the quotas increase more and more others are going to find that they simply don’t have capacity to meet their quota levels and it’s really only Saudi Arabia that has the spare.”

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“How can we solve it? OPEC has no solution” Qatari minister, Abdullah bin Hamad al-Attiyah, said.

Bloomberg