Saudi Oil Meeting-June 22- Is the oil increase enough ?

Despite all the hyped-up news about Saudi increasing oil production, the real details and impacts are a bit different:

* No specifics on when and how much they will increase the oil production.

* Other OPEC countries are valiantly opposing any further increase. Some of them are even threatening to reduce output.

*The 200,000 bpd increase last week has been already factored in the markets.

* There wasn't any new increase mentioned this weekend.

* The actual increase is from 9.2 million barrels to 9.7 million barrels( 300,000 was announced in May)

*But this is after they decreased their productions in 2006. In 2006 they pumped much more than 9.7 million barrels.

* And we know how much demand has increased in the past 2 years and this is a meager increase.

*Nigeria lost about 120,000 barrels per day after the Chevron pipeline was shutdown.

* Saudi increases oil production by 200,000 bpd and Nigeria is going to lose 120,000 bpd

* So, now you can understand the real impact of the Saudi oil increase.