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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (9296)	7/15/2004 3:29:03 PM
From: Wyätt Gwyön	Respond to of 116555

mish, it's no surprise that Russia produces more than Saudi Arabia, but SA is still more important. there are several reasons for this: 1. SA is the world's largest oil exporter (the bulk of Russia's production goes to domestic demand) 2. SA, unlike Russia, has significant excess production capacity that can be brought online quickly to influence prices 3. SA's production is slated to grow (to nearly double, if you believe their propaganda) until 2015-2020, whereas Russian production is already near a peak and should be past its peak by 2010 for reasons 1 and 2, SA currently has much more influence than Russia on global crude prices. for reason 3, SA's relative importance to the oil market will only grow in the coming years.