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Wall Street
Controls Oil
BY PHILIP K. VERLEGER, JR.
And how OPEC will be the fall guy for $90 oil.
C
THE MAGAZINE OF
INTERNATIONAL ECONOMIC POLICY
888 16th Street, N.W.
Suite 740
Washington, D.C. 20006
Phone: 202-861-0791
Fax: 202-861-0790
www.international-economy.com
14
WINTER 2007
VERLEGER
WINTER 2007
15
VERLEGER
Figure 1 U.S. Commercial Crude Stocks vs. WTI Spot Price, 1986 to 2006
400
Crude Stocks
WINTER 2007
WTI Price
70
60
350
50
40
30
300
20
10
250
1986
0
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
Billion Dollars
140
120
Other
100
GSCI
80
60
40
20
0
1991
1994
1997
2000
2003
2006*
80
VERLEGER
35
30
20
Feb-03
Jun-03
Oct-03
Feb-04
Jun-04
Oct-04
Feb-05
Contract Month
Ju
20
06
ly
30
25
Janu
ary 2
003
20
1st
5th
9th
13th
17th
21st
25th
Contract
WINTER 2007
17
VERLEGER
60
WINTER 2007
NOTE