Those following the move in WTI this morning may wonder what the catalyst for the ongoing retracement has been. According to Italian sources (the country most affected by developments in Libya so take it with a grain of salt), OPEC is meeting in Riyadh to evaluate hiking crude supply in light of Libyan developments. This mirrors a less definitive statement issued earlier by the Kuwait oil minister that "OPEC could call an emergency meeting if required by disruption to oil supply due to Middle East unrest." As a reminder after peaking WTI at $98.25, it since pared gains to under $95.75, and was trading at $96.11 last. So while Bernie Bernanke can always print dollars, it is up to OPEC to print oil. And the market seems to be satisfied for now with promises of such.
OPEC could call an emergency meeting if required by disruption to oil supply due to Middle East unrest, Kuwaiti Oil Minister Sheikh Ahmad al-Abdullah al-Sabah told al-Arabiya television on Tuesday.
"There is no country that produces on its own, we all abide by our own quotas," the minister said of OPEC. "If there was any disruption there will be an emergency meeting and it will be decided to raise the quota for each country according to its ability."