The Saudis and other oil exporters don't actually set the price of oil directly. OPEC have historically controlled oil prices indirectly by dialling their output up or down, but most producers are running flat out and have been for ages.
Saudi used to keep around 1.5m BPD production in hand to moderate supply disruptions and keep prices stable, but now they are running much closer to their maximum practical output capacity. Even if they opened all the taps and pushed forward more aggressively to bring more on line it would have a much more subdued effect than in the past. The days when they could materially affect prices on an ongoing basis are over.
Contrary to popular opinion $4 gas isn't really the producer's fault. Maybe they could get it down to $3.50 for a while (pure guess), but the idea they could just turn a spigot and gas would be £2.50 a gallon again is unrealistic.
also because it's not just about production - the value of the dollar fluctuates as well, what $2.50 bought you a few years isn't the same today, and won't be the same tomorrow.
Saudi used to keep around 1.5m BPD production in hand to moderate supply disruptions and keep prices stable, but now they are running much closer to their maximum practical output capacity. Even if they opened all the taps and pushed forward more aggressively to bring more on line it would have a much more subdued effect than in the past. The days when they could materially affect prices on an ongoing basis are over.
Contrary to popular opinion $4 gas isn't really the producer's fault. Maybe they could get it down to $3.50 for a while (pure guess), but the idea they could just turn a spigot and gas would be £2.50 a gallon again is unrealistic.