What would happen to oil if the Sauds admit to having peaked out oil production?

New York Mercantile Exchange data show 6,900 options contracts outstanding that allow buyers to purchase oil for December delivery at $80 a barrel, compared with an average of 77 contracts in January. The probability that oil will top $75 a barrel when the December crude contract expires is 21 percent, according to Adam Sieminski and Michael Lewis, strategists at Deutsche Bank AG, up from 5 percent at the start of the year.

http://quote.bloomberg.com/apps/news?pid=10000006&sid=aE6weWi_eeVc&refer=home


Now when are IB going to release the IPE Brent crude options so i can sell these $80 options?
 
Quote from just21:

The skeptics include Sadad al-Husseini, who until March 2004 was the president of Aramco.
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If you read the article, he's skeptical that the Saudis can sustain a production increase of more than 50% in less than a decade. That has nothing to do with a production peak, it is just an unsustainable rate of supply generation.

Martin
 
Quote from just21:

Former Saudi oil minister Sheikh Yamani, head of the London- based Centre for Global Energy Studies, says in his latest report: "Opec has lost credibility as a guarantor of stable oil prices and its claims that it is doing all it can to ease oil prices are starting to sound rather hollow."
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So on the one hand the Saudis are running out of oil and hiding it from the market, on the other hand they are responsible for inflating prices? Maybe your two sources, al-Husseini and Yamani, should sit down and have a chat.

Martin
 
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