Houston, we have Peak Oil

I didn't pick up on this a few days ago, but it appears to signal a major change of tactics by our planet's largest oil producer, Saudi Arabia. According to EV World, King Abdullah has ordered some newly discovered, smaller oilfields to be left untapped for future Saudi generations, and he has also effectively put a cap on oil exports at 12.5 Million barrels per day.

"This is likely to result in an earlier occurrence of global peak oil output than many consumers yet recognize."

"the geologic oil supply constraints that we are feeling in many other parts of the world are going to close in on us earlier and more severely than we previously thought."

Genuine 'Peak Oil' may, or may not, have already been reached, depending upon whose data you consider, but it looks as if 'tactical' Peak Oil is definitely already here. With fuel prices currently at record highs, and some oil futures already trading at above $130, expect a rough ride ahead.

So, the big question is, what will come first - the £5 loaf of bread or the £10 gallon of fuel?