In the past, the Saudi Arabian gov't was able to lower the price of oil by increasing output. Now, however, they hem and haw and say that there is no increased demand (when there is increased demand from countries such as China) when asked to do so. I have a feeling that Saudi oil production has peaked, the same way American oil peaked back in the 1970's. In other words, higher oil prices are here to stay, and as other countries begin to peak, we may soon have shortages... |