The Kingdom of Saudi Arabia has announced plans to "increase production". Perhaps this is factual. Perhaps KSA will simply spend down inventories. We will need more data and time to determine what is actually occurring.
I have been noodling the Administration's handling of Israel of late.... and my deeply suspicious nature can't help but put it all together this way:
Obama realizes that he has little chance of capturing the votes of pro-Israel conservatives and Libertarians (like me), and little risk of losing the American Liberal/Jewish vote. Ergo, he has little risk in taking a less than pro-Israeli position in the "peace process" (read: border negotiations). The Administration now has something with which to bargain with the Saudi's... after all, the Saudi establishment is on pins and needles over the Arab Spring thing... Obama offers to give KSA something with which they can use to placate their masses, and the KSA tries to help Obama by releasing more Oil in effort to put pressure on Oil prices (shades of Reagan and KSA and the USSR) , who would have a tough time getting re-elected if gasoline is north of $4 per gallon, with zero chance at $5 per gallon - particularly given the demographic train wreck facing the Left (after all, who IS the Left? Pro-abortion feminists, gays, beta-thru-delta males et al that quite simply don't have enough children to carry on their socio/economic/political legacy.... one look at California is all you need... hispanics are overwhelmingly Catholic and pro-Life/family, and they are going to DOMINATE California as well as all of the other border states.... like I always say: those who breed, succeed... they also get to write all of the history books).
For those that would deny this... your explanation is that your guy is dumb... I assure you, he is not... if I were working as one of his strategists, doing anything and everything to keep gasoline prices down until after the election would be job #1. This more than a plausible explanation of Obama's handling of Israel.