OPEC believes that non-OPEC producers will continue to ramp production until 2017. If demand conditions don’t change that could mean that either the cartel will have to take action to cut supply, or producers as a whole will have to endure lower prices for an extended period of time.
Rigs coming off line in the U.S. are those that were already declining in production and the robust rigs are still operating. Record production of 10.3 million barrels a day from Saudi Arabia in April continue to confirm that global supplies are ramping up in the face of lower prices, not falling. The U.S. pumped 9.57 million barrels a day in the seven days ended May 22, the most in weekly Energy Information Administration data going back to 1983. Output jumped 3.3 percent, the biggest single-week increase since October 2013. U.S. oil production surged to a 43-year high, despite a price war that resulted in a more than 50 percent reduction in active U.S. oil wells.

[June 20 2010 BP accused of collusion in setting prices of crude]

Tony Hayward aboard Bob

Tony Hayward aboard Farr-designed 52 foot Bob

U.S. lawsuit, based on allegations of collusion in setting prices of crude, refined products and biofuel says. BP Plc (BP/), Statoil ASA (STL), and Royal Dutch Shell Plc conspired with Morgan Stanley and energy traders including Vitol Group to manipulate the closely watched spot prices for Brent crude oil for more than a decade. The North Sea benchmark is used to price more than half the world’s crude and helps determine where costs are headed for fuels including gasoline and heating oil.

In May, European Union antitrust authorities raided the offices of companies including Platts, BP and Shell based on allegations of collusion in setting prices of crude, refined products and biofuels.
The case, which follows at least six other U.S. lawsuits alleging price-fixing in the Brent market

[June 29 2910]
BP’s Hayward spent the day with his son at the JP Morgan Asset Management Round The Island Race, where boats race around the Isle of Wight, off the coast of southern England.

He was later spotted by photographers on his $270,000 (£182,000) Farr 52 all carbon racing yacht, “Bob”, at the event.

White House Chief of Staff Rahm Emanuel said the boating incident has “just been part of a long line of PR gaffes and mistakes” over the Gulf oil spill.

President Obama’s Chief of Staff Rahm Emanuel on Mr Hayward’s “PR gaffe”

“To quote Tony Hayward, he’s got his life back,” added Mr Emanuel, referring to an earlier comment by Mr Hayward.

“I think we can all conclude that Tony Hayward is not going to have a second career in PR consulting,”

Tony Hayward, BP’s outgoing chief executive, will replace Andy Inglis, head of exploration and production at the UK oil group, on the board of its Russian venture, TNK-BP,  in October 2010.