Based on a document obtained through WikiLeaks, reports that Saudi Arabia can’t pump enough oil to keep fuel prices stable.
The cables, released by WikiLeaks, urge Washington to take seriously a warning from a senior Saudi government oil executive that the kingdom’s crude oil reserves may have been overstated by as much as 300bn barrels – nearly 40%.
In layman terms, what’s being reported is that when the price of oil becomes too expensive, the Saudis have produced more, adding more supply to keep prices steady. If Saudi Arabia has in fact reached “peak oil,” which this report argues it has, it means the Saudis couldn’t tap more oil and the prices of crude would jump permanently.
So, what does that mean for motorists? You guessed it. Increased uncertainty and instability over oil reserve equals… more money at the pumps. Sorry guys!