Well, this is somewhat of a suprise. There's been loads of rumours going round that Saudi Arabia had a deal with Bush to increase production before the election so Americans could enjoy lower fuel prices.

I never really gave it much credence myself, but then i read this:
http://news.bbc.co.uk/1/hi/business/3741351.stm

It looks like the Saudi's are defying OPEC in order to do it as well - makes you wonder why on earth they are sticking their neck out like that when they really don't need to.

<font color = lightgreen>Because if prices for crude oil and all its derivatives remain high, they fear that countries and companies might begin to step up research into alternative fuel sources. It is better to take a loss over the next fiscal year and make up the difference over the next decade than to make a quick profit now but lose all long-term performance.

Besides, if they scratch Bush's back then he'll scratch theirs. Politics as usual.... [img]graemlins/petard.gif[/img] </font>

heh, i applaud them. the oil market is probably the only industry on par with the corruption of the media.

in a world where mobil oil company nets 40 BILLION dollars in profit (not to mention a large overhead operation fee), its not a bad idea to increase the supply and ease stress on the consumer.

Forty billion dollars? thats a freaking joke. why cant they net in the millions and make gas prices ALOT lower? greed. you realize that altogether the oil companies probably control more money than most world powers? and why is it that while the supply of oil is greater, the stock price is lower, that the pump price for gas is still increasing? maybe some greedy oil conglomarates need to be cut off at the knees at the monopoly chopping block

Actually, demand really has jumped, and the US government also has to take the rap for higher prices in America. For some reason they're stockpiling oil like crazy, even though there's a shortage of it. Usually this is only done when supply is plentiful, but they're sticking millions of barrels away for a rainy day.