SOME RELIEF FROM INCREASING OIL PRICES? 2

An article in the New York Times (14 June 2008) reported that Saudi Arabia, the world’s largest oil exporter and the US’ second largest source of crude, announced that it was increasing its production level by 500,000 barrels per day.
This move of Saudi Arabia is not entirely a response to the economic problems of countries reeling from the high prices of oil. Even as oil exporting countries are already riding the crest of record profits from oil, this increase in production level will generate even more profits on top of record profits. This is the market mechanism that …read more