$123 USD low in July
Whoop-di-whoop -- anyone remember 1998? $10 a barrel - we're still looking at approx 1200% nett crude oil inflation over ten years. $20 short-term fluctations are chicken-feed nowadays. I'll eat my hat if it goes under $100....

Question is why are so many major oil companies putting more cash into buying back their own stock rather than exploration / refineries / tankers?

In the 1980s world crude production capacity exceeded consumption by 15%, the margin is now closer to 2%, and despite dramatic demand destruction in the USA in recent weeks, Asian demand is still on the up. In India Tata motors have just announced their $2,500 "people's car", and are looking to produce around 1 million per year. That will ramp up the demand side again.

Previous "spikes" have seen producers open up the taps when the pain was far less than it is now. Is Saudi really refusing to increase production, or does an apparent refusal involve less loss-of-face (very important in Arab societies) than admitting to an inability?

@ PBI, well your standard pinko lefty position still holds water, even if it's not the whole story .