WHAT DOES REASON HAVE TO DO WITH IT?

There is no lack of supply. There is no demand which cannot be met. Total commercial stocks for OECD nations are within target, and there is at least 57 days forward cover, enough to handle almost any eventuality. [...]

Saudi Arabia's current capacity is 12.5m barrels per day, way beyond current levels demanded, and a reliable buffer against any temporary loss of production. [...]

For the record, as things stand today, our inventories in Saudi Arabia and around the world are full. Our Rotterdam inventory is full, our Sidi Kerir facility is full, our Okinawa facility is full - 100 per cent full.

It should also be noted how other Opec members, such as Libya, Iraq and Angola, have also taken positive strides forward in increasing output and they are well poised for further advances. If you look towards Canada and the US, these nations are increasing oil production this year and beyond, and further supplies are being contributed from Russia, South America, Kazakhstan and Azerbaijan.

So the story is one of plenty. Supply is not the problem, and it has not been a problem in the recent past. There is no rational reason why oil prices are continuing to remain at these high levels.

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