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

[Yoshie Furuhashi]

On 1/30/07, Marvin Gandall <marvgandall at videotron.ca> wrote:
> 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.

$50 is good enough for Saudi Arabia, but not good enough for
Venezuela, let alone Iran, to say nothing of environmentalism.
-- 
Yoshie
<http://montages.blogspot.com/>
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