Interview with Mike Rothman from Barrons article: Where is the oil heading.

Mike Rothman is head of integrated oil research of the ISI Group, an economic research and investment-strategy firm based in Manhattan. A regular at OPEC meetings since 1986, a top-ranked energy analyst.Rothman was the former chief energy strategist at Merrill Lynch, where he worked for 20 years. 

 Why the Saudis are pushing for an increase in production?

Weaker-than-expected world oil-demand growth and the Saudis are about to bring on a big field in the fourth quarter, Khursaniyah, that's an 800,000-barrel-a-day project, and they are looking at demand numbers that are being revised downward. World oil-demand growth hasn't been at nearly the pace people thought it would be.    

What are your forecasts for demand growth?   Zero growth.

What happens when hedge funds who have been net long in crude since October '03 decide to go short or sell? You can understand the concern. It's not just about easing prices; there is the potential for a blood bath. 

So how do you explain crude prices rising to new highs after the Saudis announced they would increase production?

"What is bolstering the price?" I'm not sure, except the market seems to still believe the world is running out of oil. 
What about the demand from China and India and the notion that supplies have peaked?

The data doesn't show it.

So what are people missing?

I have never seen the gap between reality and the perception of reality as big as it is right now. The perception of what I call Chindia..........

Why the big disconnect between perception and reality? 

I don't think people are aware that demand has really fallen off so much. 

So if you were the "foaming at the mouth" bull back in 2000, what would you call yourself now?

I am a bear when I think oil is going to land at $45 to $50.