Via: Dallas Morning News

The Saudis have had their big show on the Red Sea. Now the oil markets will test the peak oil theory.

A growing number of oil traders believe the kingdom has reached the peak of its oil production capacity and won’t be able to fill your tank in the future. They are buying and selling contracts dating all the way out to 2016, and their expectations are pulling prices toward $140 a barrel.

On Monday, the day after an emergency meeting of oil producers and consuming nations here, oil futures continued their climb, rising $1.38 a barrel to settle at $136.74.

The Saudis say they will sell whatever the market wants for the rest of this year. Production will be at 9.7 million barrels a day in July, up 200,000 barrels from where it is now. If the market wants 10 million barrels a day, that’s available.

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