This weekend Wall Street will be eager to hear if Saudi Arabia really can curb the ever-increasing price of crude oil.
At the Jeddah summit, an emergency meeting of oil producing and consuming countries, the cost of petroleum and the role of speculators are all but certain to be the two major topics of conversation.
Top executives from Goldman and Morgan as well as key players from the major oil companies are all scheduled to attend.
What can you expect? For insights we turn to David Kirsch, a former State Department energy official and energy consultant. Following is a synopsis of his main points.
I think investors are setting themselves up for a lot of disappointment, says Kirsch. There were rumors floated last week that the Saudis could go to 10 million barrels per day. But I don’t see that happening. I’m not even sure they can hit that number. I suspect the Saudis want to talk about long term issues such as under-investment in oil production and not talk about supply and demand.
One thing I do think we’ll see is the Saudis attempting to show leadership on the issue. At the end of the day the Kingdom wants to avoid being blamed for high oil prices and a potential world recession.