Wikileaks: Saudi oil reserves running low

February 10th, 2011 - 8:11 pm ICT by Aishwarya Bhatt  

Riyadh, Feb 10 (THAINDIAN NEWS) A recent diplomatic cable released by WikiLeaks gives some shocking revelation about the state of Saudi Arabia’s oil reserve.

For years many people have believed that Saudi Arabia had a huge oil reserve. That doesn’t seem to be the case though because according to the diplomatic cables Saudi officials believe that the Kingdom doesn’t have as much oil reserve as previously thought.

A senior official of the Kingdom warned the United States in the diplomatic cables that Saudi Arabia’s oil reserve had been overstated by as much as 40% or 300 billion barrels.

Due to that fact, Saudi Arabia wouldn’t be raising its output to curb the soaring price of oil. Oil price currently is rising again after it eased for sometime. The price has been hovering around the $100 mark which many OPEC countries maintain is the real cost of oil.

Whenever prices of oil starts climbing, pressure is brought on OPEC to increase it output to match the demand so that prices could be kept low. High demands from emerging economies like China and India have kept the demand for oil always high.

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