Following another begging session with King Abdullah and the Saudis, President Bush did not come back empty-handed. At least not totally. Saudi Arabia will raise output 300,000 barrels a day in June to a total of 9.45 million. This production increase comes on the heels of another day of record high oil prices.
Earlier in the day there were reports Saudi Arabia would completely rebuff Bush and American demands. Instead they modestly increased production as to not completely embarass Bush.
Is this a significant increase? No. Due mostly to supply disruptions in Nigeria, OPEC’s total oil production fell by about 390,000 barrels a day in April. This increase could cause cosmetic changes in the price at the pump, but it’s clear OPEC isn’t going to be waving a magic wand any time soon to make oil under $100.