Saturday, May 15, 2004

Why the Saudis may not rescue oil prices this time.

Well the Saudis are in the news again.

The New York Times has an article [free registration required] on why Saudi Arabia might not rescue oil prices this time, despite calls last week by the Saudis for a higher OPEC quota.

According to a 2003 Atlantic Monthly article, the Saudis have a deliberate policy of excess production capacity as an "oil weapon", and are capable of occasionally turning on the oil spigot in defiance of OPEC.

My previous post discusses the Woodward claim that the Saudis promised Bush lower oil prices in time for the election, which is making news elsewhere in the blogosphere.