Saudi Arabia’s oil a huge question

From the Saudi Arabian sands pour more than 9 million barrels of crude oil each day, more than 10 percent of the world’s production pumped from what is believed to be the largest pool of recoverable crude on Earth.

For three decades, it has been Saudi Arabian oil that poured into the market to dampen rapidly rising prices and Saudi cutbacks that pushed prices back up when they were abnormally low.

Not anymore.

The Saudis say they are still committed to affordable, stable petroleum. But prices have roughly tripled in four years despite periodic Saudi announcements of plans to pump up production.

Control, it seems, has slipped away.

So when the Saudis a few weeks ago suddenly reversed field and announced a production cut, some analysts scratched their heads and wondered if, at long last, Saudi Arabian oil production has peaked. If it has, the effect is potentially huge on oil markets and the price of gasoline at the pump.

Atlanta Constitution-Journal