Sunday, April 17, 2011

Indications Saudi Oil Production Has Peaked

Saudi Arabia Oil Minister Ali al-Naimi said on Sunday the world oil market was oversupplied and that the kingdom had reduced production in March due to weak crude demand, according to Reuters.

The Saudi Oil Minister said there was weak demand with a straight face, despite the fact that oil is trading well over $100 a barrel.

The only real reason Saudi Arabia would likely be cutting production with oil over $100 is because they are maxed out and can't produce anymore than current daily production levels.

1 comment:

  1. Robert,

    might another reason be that, as last time, there was no reason for a sustained price increase, and the price plummeted to below previous levels... and they are just trying to get in front of it?