> An additional problem I see is that, althought OPEC may indeed have 90% of
>the world's excess capacity, that still isn't very much, about 2-4% of
>total >production, as opposed to 7% a decade ago. So, their margin for
>pushing others >out by excess (more efficient) production, is pretty small,
>relatively speaking.
If the excess capacity in the world's petroleum industry is less than 5% of the total production, it should be relatively easy to hike prices by cutting production? Surely other sectors of industry suffer from greater excess capacity?
I wonder what is the breakeven point in the petroleum industry.
Ulhas