(RTTNews) – [1] Oil production in Saudi Arabia will be raised, although officials in the oil-rich nation are expressing doubts as to its affects on the rising price of crude in the global market.
After an oil “summit” Sunday in Jeddah, Saudi Oil Minister Ali al-Naimi said the nation would begin pumping more crude, starting next month.
”Saudi Arabia is prepared and willing to produce additional barrels of crude above and beyond the 9.7 million barrels per day, which we plan to produce during the month of July, if demand for such quantities materializes and our customers tell us they are needed,” Naimi said.
I suppose their public skepticism is understandable; It certainly is in line with previously expressed attitudes. But the bottom line, here, is that the added flow will help to break the bubble. Privately, however, the Saudis ahve another fear, I think… And here’s the real deal; When this added oil comes online, the questions about America being able to limit price increases by putting it’s own oil on line, will have been answred. That, I think, is the reason the Saudis have been less than willing to do this, because what this move will eventually reveal, would encourage other oil feilds to be opened up in direct competition to OPEC in general and the Saudis in particular.
And as if to confrm the fact that the futures markets are being manipulated, oil futures actually went UP breifly on that announcement. I’m telling you, gang; the quickest way to get prices to crash is to bring our currently drilled and capped wells in the Destin dome [2] and elsewhere online.