Rigzone reports that despite initial reluctance, Saudi Arabia will increase its oil production by 300,000 barrels per day by May.
“Every month, we receive (orders) from our customers worldwide.” Said Saudi oil minister Ali Al-Nuaimi, ”On May 10 we increased our response to our customers by 300,000 barrels because they asked for it”.
The increase is at the lower end of analyst’s estimates as 300,000bpd will barely affect global supply and demand dynamics. The increase, announced during a visit by American President George Bush, may be more of an olive branch extended to the departing administration.
Don’t expect prices to fall over the news, $130 futures march closer every day.
The way Saudi Arabia must be enjoying its power right now, throwing crumbs to George Bush.
By: Jeremy on May 22, 2008
at 8:16 am
[...] the greatst flexibility in short term production so expect a cut from them, more than negating the 300,000 bpd increase last [...]
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at 6:41 am