Also, oil just wouldn't rise to $60. At some point between $40 and $60, you'd have a lot of extra production come on line, from Mexico, Venezuela, Texas, Alberta, the Urals, Alaska and Oklahoma. It may not make much sense to pump it out of these places at $40, but at $45 maybe, or at $50....
Really? Extra production that was not online at $40 is suddenly going to appear? On what planet do you live my friend?
The only country to keep spare capacity is Saudi Arabia. In countries in which the free market functions appropriately, spare capacity is just wasted investment. There is none in any of the places you mentioned. Only additional investment and 5 to 10 years of construction will bring more on line. And now, even the Saudis are pumping at nearly full capacity. Don't make ridiculous and utterly nonsensical statments.