President Bush is meeting today with King Abdullah of Saudi Arabia. He wanted to talk to the King about increasing production of Oil. If Saudi Arabia who is the biggest producer in the world would increase production it would put pressure of prices to go down.
Oil was selling at $127 per barrel this morning on the futures market. Saudi Arabia has said in the past they do not see any reason for increased production and they are already producing at almost 100% of their capacity. They say based on those factors they will not be able to raise production significantly to impact the market price of oil.
Greater demand from India and China in particular has pushed demand much higher in recent years and have contributed to the doubling of price in the barrel of oil in the past year.
Saudi Arabia also wanted to speak to Bush about what he is going to do about Iran. They are worried as is most of the world that Iran will have nuclear weapons soon and do not want that to happen.
