Just a few days ago, OPEC President Chakib Khelil told a French television station the awful truth that U.S. consumers don't want to hear. "I foresee prices probably between $150 and $170 this summer," Khelil said. At the same time, Libya announced it may cut production because the market is "oversupplied." Oil Minister Shokri Ghanem said: "We don't see any need for more oil. There is plenty of oil in the market." Libya pumps about 1.71 million barrels per day (bpd) of oil, out of total OPEC output of 32.12 million bpd. That means Libya could easily take away the 300,000 barrels in new production that the Saudis promised just a week ago. The Libyans, along with the rest of OPEC, want prices where they are now ... or higher. Why? Because they want ...

The big story over the last couple of days continus to be oil. Yesterday, oil prices tanked by more than $5 after China raised the domestic price of refined products (gasoline, diesel, etc.). Why would that matter? The idea is that if more consumers have to pay the “real” price of energy (China, Malaysia, Venezuela, and other countries subsidize or cap the price of energy products for their citizens), energy use will fall and so will energy prices. Today, oil prices have come bouncing right back (+$3.50 or so as I write) amid reports that Israel is contemplating an attack on Iran’s nuclear facilities. That kind of volatility really gets the market’s blood pumping.

The other big news of the week? Many companies in the financial sector continues to plumb new depths. Almost every day, we hear about fresh losses, more capital raisings, and more regulatory trouble. The regional banks …