Saturday, June 21, 2008

Will Sunday's oil summit in Saudi Arabia lower prices?

"....Backroom whispers suggest that the Saudis may add another half a million barrels, which would raise their production to well over the 9.02 million barrels per day of production reported in April. Saudi production nearing 10 million barrels per day could reverse the perception that supplies are so tight that they prompt fears of disruption.......In private, the Saudis are known to be concerned that a sustained high oil price would accelerate a move by developed nations to new technologies and alternative fuels that could erode the demand for oil, their cash cow.......By increasing the supply, the Saudis hope to burst what they see as a bubble in oil markets...."

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