King of Sanity

What Can the Saudis Do to Bring Down Oil Prices?

Jack:

I think the Saudis want to bring oil prices down to the $60.00 range. Their currency of choice is the dollar hands down. Also, they have way too much to lose with prices being grossly inflated as they are. They know very well that sooner than later, oil prices in the 3 digit range will create a severe recession like the world has never seen in just about every highly industrialized country on the planet. Most OPEC countries have very little to offer the world except the sale of their oil. What good will it do OPEC and other oil producing countries to have oil prices at $150.00 per barrel if no one can afford to buy it? Consuming countries can no more afford $120.00 per barrel compared to $150.00 for the long term with the end result of their entire economy being shredded to pieces. There needs to be some type of legislation in our country along with the other G-8 countries that puts the brakes to all of the speculators that could give a damn as to whether or not they destroy the economies throughout the world.


On Jun 19 08:51 PM Jack Yetiv wrote:

> I think today's announcement from China may help the King in his
> quest for lower oil prices. But as I have commented previously, I
> do not believe Saudi Arabia wants two-digit oil prices ever again.
>
>
> With some demand destruction here and in other OECD countries, some
> moderation in increase in demand from the developing countries (eg,
> China announcement today), and an extra half million to a million
> bpd from Saudi Arabia, that combination may just be enough to keep
> oil in the low $100's ($110-120), a zone which the consuming countries
> will be thankful for (compared to projections of $150-200) and which
> the producing countries will be happy with.
>
> A so-called "soft landing" of sorts.
>
> Jack