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Saudi Arabia opens the Spigot

June 7, 2011

Saudi Oil Production highest since financial crisis

Here is a chart of the amount of oil Saudi Arabia is pumping. It’s a significant increase and makes up for nearly the entire amount Lybia is not producing.  It is the highest amount of oil they have produced since the financial meltdown nearly 3 years ago.

My thinking is that Saudi Arabia will continue to pump this much oil until the price of oil comes down to $70.  The Saudi’s are clearly worried about oil prices being too high.

Much of the inflation worries are due to high oil prices. If we see $3.00 gasoline again, it is totally possible that we will see a big jump in consumer spending.

But keep it coming, Saudi Arabia… we could use it.

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