“In the short and medium term,” says Byron King, “I expect to see OPEC nations working to stabilize the international oil market.” (Assuming, of course, that they have the ability to do so.)
“Wide swings in oil prices are not good over the long term. It is not in OPEC’s best long-term interest to damage the U.S. economy with excessively high oil prices. And it is not good for OPEC to promote a political consensus within the U.S. that leads to a firm national commitment to develop alternatives to oil dependency.
“I think OPEC will subtly attempt to stabilize oil prices very soon. There will not be any big announcements or trumpet blowing about it. OPEC is too smart and too Byzantine when it comes to important things like that. But when the OPEC actions kick in, I think that oil prices will begin to drift downward to a level near $110-115 through the summer and into the U.S. elections in November.”
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