Woodside @ $60, page-66

Not sure what the source of that article is, but the most significant part of it - which is the penny that still needs to drop - is that OPEC might not have as much spare pumping capacity as the consensus opinion thinks.

The article lists Angola, Libya and Nigeria as countries falling short of their quotas, but the same applies for Russia, too.

If it turns out that OPEC is indeed not able to increase supply as much as people think, then that will be a very, very big deal for oil markets.

It would almost surely precipitate a full-blown oil crisis which would cripple the global economic recovery.

As it is the market desperately needs OPEC to step up to the plate over the next 12 months, and even if OPEC does so, declining non-OPEC production (especially OECD) will still see the market very tight indeed, and for years to come.

But if OPEC's response fails to add several millions of barrels per day (probably needs a full 5 mb/d) by this time next year, then - Hoo Boy! - the big problems we already have now, will seem like child's play, but comparison.

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