Wednesday, October 15, 2014

Keeping their heads off the inevitable pikes

"Saudi Prince "Astonished" At Oil Minister's "Disastrous Underestimation" Of Effect Of Price Cuts"

"Saudi Prince Alwaleed says falling oil prices 'catastrophic'"

It is telling that he has to resort to a letter posted on the internet to make his point.

From January 2012:  "Why the Saudis want $100-a-barrel oil":
"According to the Financial Times, the Saudis now prefer to keep oil prices at about $100 per barrel. What’s changed?

In a word, spending. Over the past few years, the Saudi government has taken advantage of sky-high crude prices to spend lavishly on public works and social programs to stave off the unrest that’s capsizing parts of the Middle East. As a result, the country now needs prices to stay above $80 per barrel to balance its budgets, up from $60 per barrel in 2008 and way, way up from $20 per barrel a decade ago"
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