Recent assurances by the Saudis to increase production were intended to quiet Americans, but did little to comfort informed markets. International reports have suggested the Saudis are beyond Peak Oil production.
Of oil, BusinessWeek reported:
The Saudis say they can ramp up production to 12.5 million barrels a day. But a field-by-field breakdown obtained by BusinessWeek shows that's not likely
A principal reason for the dramatic surge in world oil prices has been a tight balance of global supply and demand, combined with a lack of spare capacity to produce more crude in a pinch. So that what previously might be considered a barely consequential guerrilla attack in oil-rich Nigeria, or an empty Iranian threat to close the strategic Strait of Hormuz, results in a far more dramatic oil market reaction than ever before.
1 comment:
You dashed my hope that this would get better.
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