Monday, May 10, 2004
Saudis Say Oil Prices Too High
As if to prove Bob Woodward right, the Saudis today said that they would recommend that OPEC boost oil production by at least 1.5 million barrels to help lower prices. Oil prices dropped by $1/barrel after the announcement.
Of course, not too much should be read into this. After all, Saudi Arabia needs the money that high oil prices generate and can ill afford for there to be a significant and sustained decrease in oil prices. Most likely these remarks are for public relations purposes and have as their intent to deflect blame from OPEC for current high prices. When it comes to oil, rather than listening to what people say, watch what they do.
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Of course, not too much should be read into this. After all, Saudi Arabia needs the money that high oil prices generate and can ill afford for there to be a significant and sustained decrease in oil prices. Most likely these remarks are for public relations purposes and have as their intent to deflect blame from OPEC for current high prices. When it comes to oil, rather than listening to what people say, watch what they do.
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