Saudis Vow To Ignore OPEC Decision To Cut Down Production, 09/11/08

King Abdullah, of Saudi Arabia

Following the meeting of OPEC member nations in Vienna and their decision to decrease oil outputs by 500,000 barrels of oil per day, Saudi Arabian officials have assured world markets that they do not intend to abide and will not stem production. Saudi Arabia is by far the most powerful member of OPEC in that they control over 40% of the world's total oil supply. They, like most pro-western, American friendly nations hope understand that high oil prices are driving consumers towards oil-alternatives and hurting their future business prospects. The Saudis hope to keep oil prices low, preferably below $100 per barrel. On the flip side of that, price hawks within OPEC, like Iran and Venezuela, are depending on oil prices remaining as high as possible to help fund a range of social and military policies. It is a delicate balance between too high and too low, and luckily large oil countries like Saudi Arabia have a vested interest in keeping oil prices low.

See the article here. -V