Xinhua recently reported that the widely expected global oil price increase did not materialize. The report suggested that, while the planned sanctions against Iran are approaching their effective date, the international oil price has actually been dropping. The reporter expressed the belief that certain Middle Eastern oil countries have been exceeding their production quota. Saudi Arabia, the United Arab Emirates, and Kuwait are named in the report as the primary countries pumping extra oil into the global market. The current Saudi Arabian daily production level has reached its highest point in 30 years. Iran has been accusing these countries of violating the OPEC quota rules. Experts believe that the global demand for oil is on the decline, mainly due to the Euro crisis. The report concluded that some Middle Eastern countries will suffer in the long-term for this over-production strategy.
Source: Xinhua, Jun 17, 2012