March 11 is supposed to be the big day of reckoning in Saudi Arabia, although the market fears that things will heat up before that.
In anticipation of this, King Abdullah has announced all sorts of bribes for the public. How will they pay for these bribes? Pumping more oil, obviously.
Via Citi, here’s a look at OPEC spare capacity, and how it breaks down by country.
It looks like Saudi Arabia has about 3.5 million more barrels to pump.
In fact, if you’re looking for a bear case on oil this is part of it. Quotas go out the window when you’re trying to feed your angry peasants.