The Saudis have done this a few times before. It works sometimes and other times is doesn't. The speculators will just start other rumors so they can bring the price back up to make even more profits. Oil speculators never lose money, they don't sell it cheaper than they bought it for.

Originally posted by kdog1982
Are they getting scared and wanting more protection from the US and it's allies?

China is now officially the Saudi's largest customers. If they are running scared let China come running.....

It's "three card monte" on a global scale - and now that the world is destabilizing, the guilty want to do a bit of spin and image reconstruction to keep themselves out of the eye of public rage.

My .02 cents.

This is PR.

~Heff

Originally posted by Hefficide

It's "three card monte" on a global scale - and now that the world is destabilizing, the guilty want to do a bit of spin and image reconstruction to keep themselves out of the eye of public rage.

My .02 cents.

This is PR.

~Heff

Playing the good guy card,so to speak.
Then they are going to play the "can we have more war planes" card in exchange for " we will give you candy from the creepy van" card.

Originally posted by kdog1982


What??????
What is really going on here,I mean,c'mon,the saudis are worried about the price of oil and the global economy?
Are they getting scared and wanting more protection from the US and it's allies?

It has been happening since OPEC was formed - indeed the Saudi ability to vary their output to maintain an oil price was one of the cornerstones of OPEC - they had enough spare capacity then so that other member countries could literally produce as much oil as they wanted, and the Saudis would "take up the slack" - but just enough to ensure a decent oil price.

this was standard teaching at Econ 101 level in the 1980's!

And as recently as oh...the mid 1990's (??) the Saudi's were supposedly keen on keeping oil at about US$25 ppb IIRC - a higher price being thought to depress the world economy so much that they would actually lose revenue.

since those early days of OPEC production has increased and many OPEC countries have reneged on production agreements made from time to time, but AFAIK the basis remains.

It isn't new.