It's simple supply and demand guys.
No, it's not.
Yes it is. Demand has fallen. Guess what the price of oil did? If the Saudi's had cut production, guess what the price will do?
I'm sure it's better to stomp your feet and claim it's the mid term elections, etc.
It is a bit more complex as it's not as simple as a factory producing widgets where the factory can simple crank up or throttle back the factory.
Every field has a few years were production peaks, then it starts a decline for the next 20, 30 or however many years it continues to produce. As a field ages it's more expensive to produce the oil, same number of workers, equipment that is wearing out and lower production.
If oil companies don't continually invest in new exploration, then they'll soon not be selling enough oil to cover their costs, but if they invest too much too soon they cut themselves off by putting too much oil on the market. Don't invest enough and they won't produce enough to keep the lights on no matter what the price of crude. Then you through in countries using oil as a political tool or weapon, traders and speculators and it's much more complex than simple supply and demand.
