AL Berta

Oil Demand Does Not Have to Cause Higher Prices

World oil production is approximately 85 million barrels per day. This is the maximum that can be produced currently. The Saudis don't control the price. They have repeatedly tried to "talk the price down" by stating they will increase production. They are whistling in the dark. They and everyone else, are producing every drop they can and still can't keep up with rising demand. Demand is rising 4% annually while production is declining 4% annually. Do the math. Unless demand slows (it won't) or production increases due to massive new discoveries (it won't) then the price of oil will continue higher.