Oil prices were up a bit today on news about some storm somewhere, but the fundamentals appear to have changed, at least for now. Marketwatch:

Oil prices also saw pressure after Friday’s news that OPEC production was running well above official quotas set for the cartel’s members, according to Meir. Petrologistics said OPEC will produce 32.95 million barrels a day in August, up 450,000 barrels from a revised 32.5 million barrels a day in July, according to a Reuters report.

“We could see further weakness gnaw at the markets over the next few weeks, as weaker demand aggravates the excess supply problem,” Meir told clients. He thinks it’s unlikely that OPEC will take action to roll back any of the excess supplies.

“OPEC production was running well above official quotas set for the cartel’s members.” That’s very interesting. We expect to see more cheating in the future, but we’ll just have to see if that happens.

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