Actually, Saudi already increased production from 9m to about 10m BOPD at the beginning of the year to offset declining Iranian oil output. The OPEC decision today is logical given falling prices. Kuwait's oil minister said earlier this year that it would adjust output to keep oil at about $100. Given that oil futures sentiment has pushed oil down to $83, OPEC wouldn't increase output any further.
The point is that OPEC has a major effect on supply and generally likes a price that is high enough (about $100), but not up where it was earlier this year. The current price range is fine for SEA based on its cost structure. Refinery pricing may be an issue, but not as bad as what the Canadians get ($30 less than WTI due to refinery access and related matters).
SEA Price at posting:
54.0¢ Sentiment: Buy Disclosure: Held
