Monday, June 23, 2008

Saudis Lose Control

It used to be that the mere suggestion of an oil production increase (especially by Saudi Arabia--the world's largest producer) could send oil prices tumbling.

Not anymore.

In fact, within the last several weeks, Saudi Arabia has actually announced two production increases (totaling roughly 500k barrels per day) and what did the market do?

Go up instead of down
.

My what unexpected times we are living in these days.