Monday, April 18, 2011

Even with high gas prices here, Saudis suddenly back down on oil production

Saudi Arabia has confirmed a production cut in oil in recent days, contradicting the earlier increases to make up for uncertainties caused by unrest in Libya and other MidEast countries.  Crude oil futures are slipping, due to prospects for weaker demand from Japan after the earthquake and concerns that action in China to reduce inflation will lead to less demand. A link is for a widely circulated WSJ story by Jerry A. DiColo is here

Will this mean that prices at the pump will soften, or will the cuts inspire fears that the Middle East is simply less willing to supply a “thirsty” and careless West dependable crude given the fear of political instability?

Maybe "Atlas Shrugged" has it right.  High speed rail needs to come back. 
Also, Donald Trump has been telling ABC News that as president, he would consider seizing Middle Eastern oil fields as "pay back" for the $1.5 trillion we put into the region!

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