In fact, crude is still on track to reach $150 a barrel by mid-summer.
As Saudi Oil Minister Ali Naimi pointed out last week, current oil supplies already exceed global demand by 1 million-2 million barrels per day.
For its part, Saudi Arabia is already breaking its own OPEC-imposed production quota limit, churning out about 10 million barrels of oil per day – close to its 12.5 million barrel capacity.
Yet the effect of that production has been negligible.
Oil is still trading at $106 a barrel on the NYMEX – something that has clearly flummoxed the world’s largest oil producer.
