Crude Oil Prices Top $50 Per Barrel
Crude oil topped the psychological milestone of $50 per barrel Tuesday for the first time, and a Saudi Arabian oil official said the world’s largest petroleum exporter would raise its production capacity by nearly 5 percent in a bid to calm prices.
Analysts said instability in the Middle East, political unrest in Nigeria, Africa’s top oil exporter, and damage to U.S. production from the Caribbean’s hurricanes were keeping traders on edge about world supplies. Some said the price may not be sustainable and may soon fall.
In response to the increase, Saudi Arabia announced it will raise its oil production capacity from 10.5 million barrels a day to 11 million barrels in order to “stabilize” prices. It is currently producing about 9.5 million barrels a day.
The last time oil prices began to rise Saudi Arabia increased production and it did little to nothing to stabilize prices. The fact that they can increase production by 1.5 million barrels per day will not decrease the price per barrel because OPEC can increase and decrease production at will. This has some analysts stating we are falling into a recession.
convenient timing
Its time to drill in the ANWR and screw sierra club,greenpeace,and the rest of the enviromentalist wacko community its time to get real and stop listening to these enviromental idiots:mad::roll::razz::grin::cool:
And the left insisted that the price of oil would start DROPPING based on a deal with the Saudi’s. How can the left be so wrong?
Actually its,$49.80 per barrel
Saudi Arabia, the world’s largest oil exporter, will raise its production capacity by nearly 5 percent to 11 million barrels a day
-Forbes
actually Sabor read the WSJ – the price varies, but did hit a high of $50.17