[Aerkuld]

It's all down to perception.

As I understand it the prices are being driven by speculators in a market who's perception is that the demand is rising faster than it can be produced. Whether it is or not is immaterial, the fact that the perception exists means that the future price of oil is expected to rise. By producing more oil I assume they hope to change the perception of the market place thereby lowering the future price of oil.