Is OPEC Winning the Oil Price War?
The oil cartel’s gambit may be paying off. At least that’s the suggestion from its latest market report, which forecasts that demand for OPEC oil will increase by 100,000 barrels per day, while U.S. output will be 130,000 barrels a day less than projected. U.S. crude prices rose 2.3 percent on the report, which supports the cartel’s strategy of letting prices fall to hurt rivals. But naysayers aren’t buying the rebound: Citigroup says oil could plummet to $20 a barrel, leading to the “end of OPEC.”