January 27, 2007

THEY CAN'T EVEN KEEP THEM ABOVE $40:

Saudis want to hold down the price of oil (Jad Mouawad, January 27, 2007, International Herald Tribune)

Saudi Arabia, which benefited immensely from record oil prices last year, has sent signals in the last two weeks that it is committed to keeping oil at around $50 a barrel -- down $27 a barrel from the summer peak that shook consumers across the developed world.

The indications came in typically cryptic fashion for the oil-rich kingdom. In Tokyo last week, Ali al-Naimi, the Saudi oil minister, said that Saudi Arabia's policy was to maintain "moderate prices." The previous week, on a stop in New Delhi, he effectively put his veto on an emergency meeting of the Organization of the Petroleum Exporting Countries to prop up prices after oil briefly dropped below $50 a barrel, the lowest level in nearly two years.

The events that propelled oil prices above $77 a barrel last July then dragged them down again were beyond the control of any single producer.


Posted by Orrin Judd at January 27, 2007 5:43 PM
Comments

I think they're doing this to reduce Iran's oil revenue. They did the same thing to the USSR in the '80s at Reagan's urging.

Posted by: PapayaSF at January 27, 2007 7:14 PM
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