Will Saudis Turn On Spigot?
With crude prices gushing ever higher we can’t help but wonder why Saudi Arabia won’t help more. Aren’t they supposed to be our friend?
During its first meeting since President Bush's visit to Saudi Arabia, the Saudi Cabinet stood by its decision to raise production by 300,000 barrels a day and said it was enough to meet market requirements.
OPEC oil ministers blame the rapidly rising cost on speculators rather than a shortage of supply.
The Saudis aren’t interested in easing your pain at the pump, says hedge fund and private equity consultant John D’Agastino, a former vice president at the New York Mercantile Exchange. And I don’t know why we should expect them to be. It’s not worth their while. At the end of the day it’s in their interest to keep production tight.
The only factors that could reduce price of crude are a significant global slowdown and signs that alternative energy is making serious advances.
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