August 24, 2005
The "Super Spike" in Oil Prices - Implications for the U.S. and Saudi ArabiaTopics: International News
As the riches of the Saudi princes continue to grow, precisely what percentage of oil revenues lines their pockets, however, remains one of the best kept secrets in the kingdom.
In one year, the price of oil has risen by 52 percent. Drivers who paid $25 to fill their tanks a year ago now pay $50 and more. No relief is in sight. OPEC members (Oil Producing and Exporting Countries) are already producing at full capacity, and OPEC's figures show that the 10 member countries, excluding Iraq, are currently producing 30,255 million barrels of crude oil daily. With the exception of Saudi Arabia, none of the cartel members currently has surplus capacity.So where is the demand for oil taking us? Read on to find out, sort of ...
Given that global oil demand is projected to rise by 1.5 million b/d in the next two years, oil producers -both OPEC and non-OPEC members - will be hard pressed to meet the challenge. Meanwhile, neither the U.S. nor China, the two largest consumers of crude oil, is showing a diminishing need for this commodity.
Posted by Richard at August 24, 2005 11:32 PM
Articles Related to International News: