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| Oil prices "unrealistically high" - Saudi adviser |
| 2005-03-07 |
| Current crude oil prices are "unrealistically high" and do not reflect any physical shortages in world markets, Adel al-Jubeir, a foreign affairs adviser to Saudi Crown Prince Abdullah, said on Monday. Al-Jubeir told a news briefing on Saudi security measures that "we don't see shortage in the physical supply of crude oil." He added that global markets are "fairly stretched out" due to shipping pressures to meet rising demand in China, India and the United States. "We will make our oil available" to customers, said Al-Jubeir. Current prices are "unrealistically high," he added [again]. Soo... what he is up to? Trying to do some Chavez-control (Chavez $80 greedy eyes) so he does not screw the golden-egg goose for Soddies? What is your reading? |
| Posted by:Sobiesky |
| #4 It's too fricking late. Oil won't last forever. We need to move forward sooner or later. Why not now? |
| Posted by: 2b 2005-03-07 9:24:16 PM |
| #3 Ima call SA bluff, even ifn they'd like to lower the price... they can't, they lost control of the cartel oil pricing mechanizem, bad for the US in the short term, but good in the long term. |
| Posted by: Francis 2005-03-07 5:19:25 PM |
| #2 The Saudis say this on a regular basis and Mrs D has probably nailed the reason. The perception of future price instability is a major disincentive to investing in unconventional sources. See my comments of 2 days ago. |
| Posted by: phil_b 2005-03-07 5:07:52 PM |
| #1 They want to keep the price just below the level at which it becomes economically rational to look at unconventional sources of petroleum, shale, tar sands, renewed domestic drilling, increased conservation. They also want to keep demand alive. Precipitating a recession in China, which has not allowed its currency to appreciate against the dollar, is also not in the Saudi's interest. Finally, they want to stay out of the American people's cross hairs as tyrannic price gougers. In fact, they want as little U. S. publicity as possible. |
| Posted by: Mrs. Davis 2005-03-07 4:57:33 PM |