The great oil glut deepens

The 1980 oil glut is turning out even deeper than the Saudis (and the West) expected, but given Saudi Arabia's anger with the United States over its inability to prevent Israel annexing East Jerusalem (MEN 25 August 1980) this could prompt the princes in Riyadh to cut back oil production very sharply indeed. For short periods, oil output might even drop well below the official 8.5 million bid ceiling.