So after production spiked due to lost Libyan output, production now seems be falling back to prior level as Libya comes back online. There are other things affecting supply and demand as well, also altering Saudi production accordingly. The Saudis lose control of price on the upside only when they don’t have sufficient productive capacity to meet demand. And they lose control on the downside when they can’t cut sufficiently to address a fall in net demand.
Looks to me like they will remain in that catbird seat for quite a while. And if they keep prices relatively stable there will not likely be a 70′s style global inflation problem.