Where is Saudi’s excess capacity when you need it?

[phantom power]

One does wonder.

Exactly how high do oil prices have to rise before Saudi Arabia will start using it supposed three million barrels of spare capacity?

Does Saudi Aramco intend to stay on the sidelines watching Brent crude prices - already $120 per barrel - climb as high as $200 (U.S.) per barrel, while blaming speculators for distorting market fundamentals?

Or is the emperor simply wearing no clothes? Is Saudi Arabia, and by extension, OPEC, already tapped out, barely struggling to make up for the loss of 1.3 million barrels of oil exports from a now non-producing, war-torn, Libya.

Even less credible than the country’s official estimates of its reserve capacity is the notion Saudi Arabia could bring down today’s triple digit oil prices but instead chooses not to

No country in the world is more dependent on a healthy global oil market than Saudi Arabia, which pumps out nine million barrels a day. And it is no mystery a further increase in oil prices will lead to another oil induced recession and a subsequent collapse in world oil demand and prices.

http://www.theglobeandmail.com/report-on-business/commentary/jeff-rubins-smaller-world/where-is-saudis-excess-capacity-when-you-need-it/article1981719/

[RC]

1. The Saudi's can't pump more than 80% of capacity.

They are running out of oil.

[randr]

2. We do not have a shortage

Demand is not fueling the price increase. I would bet there are dozens on oil tankers waiting off shore, at this moment, loaded with highly speculated product.
Obama's threat to release strategic reserves is empty and would piss off all his Wall Street friends.
Wake up and realize they are bringing us to our knees.

[RaleighNCDUer]

3. Exactly.

Our reserves are high and demand is low, yet prices rise - it's purely Wall Street speculation driving the price increase. You know, those guys who never worry about the cost of filling their own gas tanks.

[hunter]

4. If that's their plan it's a remarkably bad one...

http://www.angryflower.com

[XemaSab]

5. .