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Why Saudi Arabia is losing its power to calm the oil markets
In the old days, whenever oil prices got bumpy, the United States could ask Saudi Arabia to pump out more crude and calm the markets. But that’s increasingly no longer the case. Saudi production is struggling to keep up with rising demand in places like China. What’s more, as Jim Krane reports today, Saudi Arabia is growing so fast that it’s consuming its own oil at a shocking rate:
With domestic electricity demand rising 10% per year in Saudi Arabia, the kingdom now devours more than a quarter of its oil production.
Ah..OK..I get it. So now when the Saudis start their nuclear program it will be solely for peaceful, energy-producing purposes. You know...like the Iranians.
http://www.washingtonpost.com/blogs/ezra-klein/post/why-saudi-arabia-is-losing-its-power-to-calm-the-oil-markets/2012/04/04/gIQABRklvS_blog.html?wprss=rss_ezra-klein