Thread: Saudi's increase production, yet oil goes up????

Seems like it will close higher today, there's still more than 1 hour before close though.

So supply goes up, demand has been decreasing, yet price goes up?? I think my prof left that out of economics class. What's driving this market now? Just greed?

The Saudis opened the spigot for more sour crude, but Nigerian oil workers are on strike and thus Nigeria is producing less sweet crude.
Net result is reduced supply, and the price goes up.

You Econ teacher had it right. 8O

guess I didn't hear about that Nigeria thing, thanks for the news. Why don't we extract more from our own sources? Demand is decreasing, so oil companies should want to increase supply to the point where they make enough and it costs enough. But something funny is going on here.

Yes Sir,The oil market only wants light sweet crude oil,but they don"t tell you that Conoco Phillips has the refinenary to process so called sour crude.
The best question is why did George Bush senior sign the off shore oil drilling ban? The supply problem is a greed driven myth.Oil is harder to find?
The US is sitting on trillions of barrels,boy that is hard to find?
Blame old man Bush senior.
Their roots in Oil go back 100 years,oil and money is power.
Sneaky rats.

I'm not defending Bush, but I believe the off-shore drilling ban goes back to 1982 and every president since that has continued it. However, Bush now wants to lift the ban but Congress said no, agreeing with environmentalist predictions of coastline destruction, no doubt.

However, the facts say otherwise, there are far more risks for spills in transportation of oil compared to extraction. Moreover, oil rigs off the coast of Texas have become fantastic fishing spots due to the artificial reefs they create.

Anyway, the main reasons for the current sky high price of crude is massive speculation. All the crap about China, India, Nigerian oil workers, blah, blah, blah, is nothing more than propaganda to support the status quo.