2007-11-30 Saudi Oil Production

Saudi production rose last month, meaning demand for their output increased even at the higher prices. They are acting as ‘swing producer’ and let output vary to meet actual demand. By definition, therefore, markets are ‘well supplied’ at their price. To avoid controversy, they deny this policy, but in fact they have no choice as a point of market logic.


Leave a Reply

Your email address will not be published. Required fields are marked *