Home > Main > Saudi Arabia, the only country in OPEC that can pump more oil, says it will pump more oil

Saudi Arabia, the only country in OPEC that can pump more oil, says it will pump more oil

June 8, 2011

What ever happened to good ole’ common sense? What OPEC says doesn’t matter. What Saudi Arabia says matters, because only Saudi Arabia can meaningfully increase how much oil they pump tomorrow.

Here is the wonderful Oil Drum with an easy to read graph of who has excess capacity.   See that gigantic purple band that dominates the entire graph?  That’s Saudi Arabia!  Just eyeballing it, Saudi Arabia has double the spare capacity of the rest of OPEC combined!

So when the Saudi oil minister says they will pump lots more oil, it basically means OPEC is going to pump more oil.  Not only that, Saudi Arabia has the support of Kuwait and the United Arab Emirates.  I hope we have the support of Iraq, otherwise we spent a few trillion on nothing.

Saudi Arabia is the only one that matters right now, and they have indicated there will be supply.  Mosler says – due to conversations with oil brokers –  Saudi Arabia tells refiners a price, and then tells refiners they will fill every order above that price.

 

 

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