Saudi excess oil supply a myth: Rubin

Brent crude rose back to two-and-a-half year highs Wednesday because of the Libyan conflict. But author and economist Jeff Rubin tells BNN the spike in the price of oil may just be the tip of the iceberg.

Rubin says reports that producers in OPEC, particularly Saudi Arabia, will able to cover a shortfall in oil production from Libya are greatly exaggerated.

“The four million barrels-a-day of excess capacity that Saudi Aramco claims is of the fictional variety, “ he says. “I think that we’re going to find they’re hard pressed to make up even the Libyan shortfall because what they’re supplying isn’t the same quality of oil that Libya was supplying to European refineries."