The oil problem
Could turning on the oil spigot put an end to the huge run in the price of oil? Don’t bet on it.
Oil-producing countries are already pumping at full throttle, and there isn’t a lot of spare production capacity that could meaningfully affect global prices.
Over the weekend, Saudi Arabia said it will boost its oil output by 200,000 barrels a day. Despite the promise of more supply, the price of oil spiked higher Monday morning.
The main reason: The added supply won’t be very great, and demand, especially from China and India, has shown little sign of slowing.
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