Saudi has the power to drive the price of oil up (by limiting production) but it no longer has the capacity to drive prices down (by increasing production) -- according to experts.
The article provides several reasons why Saudi's output will not be able to keep up with demand, and will eventually begin to decline.
February 21, 2011: SeekingAlpha; same concern as others -- Saudi overstating reserves.
February 9, 2011: The spokesman now says he was misquoted, February 9, 2011. Comment: sounds like someone who spoke his mind when he didn't think his comments were being recorded; now that he has been exposed by Wikileaks, he is backing off. The truth is probably somewhere in the middle.
He may be backtracking but "it is what it is."
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.