Ali Al-Naimi not Ahmed Zaki Yamani is the Saudi oil minister now and so the Saudis are not talking about raising prices but about raising production to meet demand. Al-Naimi brought the fundamentals of Saudi production power into the discussion and there was no need to talk about the euro vs. the dollar or any other issue that normally affects oil prices. It is estimated that the Saudis can produce another 4 million barrels daily and keep prices from going much higher. Every analyst understood from Al-Naimi's statement today that Saudi Arabia does not necessarily want the price to go beyond $100 and that led to a 4th straight day of falling prices. The high inventory levels at Cushing is pushing NYMEX prices to be priced at a greater discount than Brent.
Today, crude -$1.26, $87.85; gasoline -6.94¢, $2.413; distillate -3.95¢, $2.6195.
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