The Rising Influence of Rising Affluence

[OakesCS]

If u look at the production numbers for the last yr (world and major producers) you'll see that any 'oil glut' is not due to increased production. That means consumption is off and that isn't because Japan and Detroit are producing nothing but battery powered cars.

SA can withstand lower oil prices for quite a while. Venezuela can not. The Saudi concerns are not just shale production which I suspect has only a very small competitive relationship to Saudi oil.

Personally, I think the Saudis have effectively taken it upon themselves to provide a more effective stimulus plan for the world economy than all of the crap that has been done by the US, Japanese, EU, and PRC governments. And they get to stick it to Iran and Russia at the same time.