How Saudi Arabia Will Influence the Oil Market to Benefit their Economy
Stuart
Staniford has been watching the decline in oil prices. He has then
commented that, given the Saudi need for income to hold off “Arab
Spring” dissatisfaction, they are unlikely to let prices fall too far,
before cutting production, since even a 10% reduction in output could
raise prices 20%, thereby resolving possible income concerns. This well
reflects the role of the Texas Railroad Commission back when, which
controlled US production in order to sustain an acceptable price for
oil. But that role collapsed when overall US production…Read more...
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