Saudi Arabia is again promising to ramp up oil production to save the world. The chart below from Zero Hedge reveals these Arabs to be liars and knaves. In the last 11 years they have never been able to get their production above 9.8 million barrels per day. During this time we’ve had the Iraq War that took millions of barrels off the market, we had the 2008 price spike to $140 a barrel, we’ve had the Libyan production off the market, and now we have Iranian production off the market. With all this turmoil, Saudi Arabia has only been able to ramp up production by 300,000 barrels in 11 years. They have been declaring for years they have the ability to produce 12 million barrels per day. It’s a lie. Their major oil fields are 50 years old and they are depleting. They are struggling to maintain their current production levels. Peak Oil is a bitch, even for Arabs.
The important factoid in the article below is that they have leased 11 supertankers that can hold 2 million barrels each and will be filling them and sending them to the U.S. with an arrival date of around April 1. Saudi Arabia only provides 10% of our oil daily imports but is shipping more than 100% of our daily needs in one fell swoop. Why would they do this? This is a highly unusual act. It seems timed to provide excess oil early in April. This is another dot pointing towards an attack on Iran within the next few weeks. The dots sure seem to be piling up.
Saudi Arabia sends tankers to US with pledge to bring down oil price
Saudi Arabia has pledged to take action to lower the high price of oil, which has risen to around $125 a barrel, with laden supertankers set to arrive in the US in the coming weeks.
Saudi Arabia said yesterday it will work “individually” and with the other petrol-rich Gulf states to return prices to “fair” levels.
The country indicated earlier this year that $100 a barrel was the ideal oil price.
The price of oil slid this morning in London as a result, with Brent crude trading down as much as 1pc at $124.40.
Oil prices have climbed to $127 a barrel this year, just $20 short of their all-time high, as tighter Western sanctions on Iran threaten to choke off the country’s exports.
Prices also took a hit this morning after China increased retail fuel prices for the second time in two months, increasing concern that demand in the country – the world’s second-largest oil consumer after the US – will decline.
That compares to the one supertanker every two months sent to the US from Saudi last year, the Financial Times reported.
President Barack Obama is under pressure to bring down the price of gasoline, one of the key issues for US voters, as he steps up his re-election campaign.
The US economy is not “out of the woods yet” as rising petrol prices threaten to dent Americans’ purchasing power, William Dudley, the head of the New York Federal Reserve, warned yesterday.
The International Monetary Fund (IMF) has also warned that surging oil costs pose a serious risk to the global economy, threatening to smother expansion before a fresh cycle of growth is safely under way.
“The world is not yet out of the danger zone,” said Christine Lagarde, the IMF’s managing director, speaking in Beijing at the weekend. “The rising price of oil is a new threat that could derail the recovery. I think it is a major threat.”
The head of airline industry body, the International Air Transport Association (IATA), also warned today that airlines face bankruptcy if fuel prices rise further to $150 a barrel.
“We cannot rule out the possibility of some bankruptcy, all regions will lose in this case, the most losses will be in Europe, but everywhere, there will be significant effects,” said Tony Tyler.