Saudi Arabia reported that it plans to increase its oil production in July by almost half a million barrels a day in an attempt to reign in the long running spike in oil prices that left oil trading at nearly $140 dollars in early trading on Monday. It is unclear whether this ambitious effort will succeed. While Saudi Arabia is by far the largest single producer of oil and played an influential role in previous OPEC machinations, strong demand growth in China and India has left it with little spare capacity available for sudden increases. It must instead rely upon costly and time consuming exploration and exploitation of new reserves. Even with a fourth of known global reserves, Saudi Arabia faces an uphill fight to bring down the sky high prices of the past year.

Snapshot asks, will global oil demand growth abate enough for Suadi Arabia's gamble to work?

Wall Street Journal - Saudi Arabia's Leverage in Oil Market Is Sapped
Financial Times - Oil hits new record near $140
New York Times - Plan Would Lift Saudi Oil Output
Financial Times - Saudis consider boost in oil output