No shortage of crude oil in market 4/18/2011

OPEC: No shortage of crude oil in market
OPEC concerned about prices and impact on global economy, but market oversupplied
Tarek El-Tablawy, AP Business Writer, On Monday April 18, 2011, 10:16 am EDT

CAIRO (AP) -- OPEC is worried about the recent surge in global oil prices and its potential impact on the world economy, but the market is oversupplied, several oil officials said Monday suggesting the bloc will not raise its output at its June meeting.

Oil prices have spiked sharply over the past few months, surging on concerns that the unrest ravaging the Arab world, including Organization of the Petroleum Exporting Countries member Libya, will affect output from a group that supplies about 35 percent of the world's crude. The gains have stoked fears that they could squeeze the global economy.

OPEC acknowledged those concerns, but said the increases that briefly pushed oil futures as high as $127 per barrel were driven mainly by speculation.

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My comment...
Color me skeptical. I believe the reasons Saudi Arabia won't increase output are: (1) their reserves are overstated by 40%; (2) they need high prices to pay for the $100B they are handing their populace to quell unrest; (3) they are angry with the U.S. for not supporting Mubarek; (4) oil in the ground is worth more than than dollars in the hand.