Comments on: The Saudis and Oil Prices http://xrdarabia.org/2009/05/28/the-saudis-and-oil-prices/ Informed comment and commentary about Saudi Arabia, reform, and its relations with the US Tue, 18 Jun 2013 16:54:13 +0000 hourly 1 http://wordpress.org/?v=3.5.1 By: John Burgess http://xrdarabia.org/2009/05/28/the-saudis-and-oil-prices/comment-page-1/#comment-21140 John Burgess Thu, 28 May 2009 16:57:56 +0000 http://xrdarabia.org/?p=7612#comment-21140 There’s the fact, too, that Saudis are so heavily invested outside of the Kingdom that global economic recessions/depressions also hit Saudis (including rich Saudis) directly in the pocketbook.

]]> By: Sandy (formerly Grace) http://xrdarabia.org/2009/05/28/the-saudis-and-oil-prices/comment-page-1/#comment-21139 Sandy (formerly Grace) Thu, 28 May 2009 16:33:45 +0000 http://xrdarabia.org/?p=7612#comment-21139 When the prices go very high- it is bad for the economy here. The price of everything except gas goes up- because everything is imported. People really struggle. Of course the benefits of the high prices are supposed to eventually “trickle down” but we all know how well that can work.

I do generally believe they know it is in their interest for the prices not to stay too high. Prices are very reactive to many things it seems- and I think they try not to live by the knee jerk reaction.

I’ll readily admit there is something in all this I don’t get. I really feel games are being played by people making lots of money no matter what the cost of gas is.

]]> By: John Burgess http://xrdarabia.org/2009/05/28/the-saudis-and-oil-prices/comment-page-1/#comment-21138 John Burgess Thu, 28 May 2009 15:52:49 +0000 http://xrdarabia.org/?p=7612#comment-21138 I do think the Saudis are sensitive to the effects of too-high prices… as they have always been (excepting 1973). The paradox is that even given the current global economy, oil demand is rising and does support the $60-$80 level. I suspect that if oil demand contracts, then the hawks will start losing the arguments more strenuously.

]]> By: Solomon2 http://xrdarabia.org/2009/05/28/the-saudis-and-oil-prices/comment-page-1/#comment-21135 Solomon2 Thu, 28 May 2009 15:30:33 +0000 http://xrdarabia.org/?p=7612#comment-21135 Yes, above $90 demand will drop relatively quickly. But IMO the $60-$80 level is sufficient to choke the growth needed to escape the current world recession, and will once again drive down the price levels of stock and real estate – much of it owned by the Saudis themselves.

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