Reuters cites OPEC sources

A must-read story for oil traders is out from Reuters. Citing sources who are in Vienna for lower-level OPEC meetings this week, they cite deepening strife.

"OPEC is dead," declared one frustrated official, likely from Latin America.

The driving change in thinking from Saudi Arabia is that oil is no longer a scarce resource. That supplies in the world will outlast the need for oil.

"It believes it will be better off producing more at today's low prices than reducing output, only to sell the oil for even less in the future as global demand ebbs," Reuters writes.

Saudi Arabia will no longer be the swing producer and cut production based on price.