[lbo-talk] Saudis cutting output to keep oil price north of $50

Marvin Gandall marvgandall at videotron.ca
Tue Jan 30 06:30:13 PST 2007


Doug posted.


> Wall Street Journal - January 30, 2007
> Saudis to Pare Oil Output Again
>
> Amid Market Uncertainty,
> OPEC Leader to Remove
> 158,000 Barrels a Day
============================== The NYT article posted earlier by Yoshie reported that "several European officials said in interviews that they believe that the United States and Saudi Arabia have an unwritten deal to keep oil production up, and prices down, to further squeeze Iran, which is dependent on oil for its economic solvency."

The Journal article supports the other interpretation: that the motivation has been primarily economic rather than political - to bring to oil price down to $50-$55 in order to discourage the development of alternative energy supplies.



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