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| Arabia |
| Saudi king sees fair oil price at $75-80: report |
| 2009-05-27 |
| [Al Arabiya Latest] Saudi Arabia will not cut public spending and sees no need to borrow from local or international markets, press reports quoted the nation's king as saying on Tuesday. "The volume of spending will not contract and we do not need debt whether local or foreign," King Abdullah Bin-Abd-al-Aziz al-Saud said in an interview with Kuwait's al-Seyasah daily. The monarch said the Gulf kingdom's economy was strong enough to get over the financial crisis and said a number of infra-structure projects worth billions of dollars were underway, ruling out that the possibility that Saudi Arabia would have to liquidate state investment. King Abdullah said the current price of $75-80 a barrel is a fair price for oil. "We are now seeing a quick recovery in the global economy and we see indications of increasing demand on this material (oil)." |
| Posted by:Fred |
| #6 Over the next few years (5, 10, 20?) oil prices will almost certainly increase faster than inflation. The supply is finite, and given enough time, the demand is not. Two problems: 1) You have to own the oil, not oil companies or leases or whatever - where would you keep it? 2) If the prices go up too much the governments of the world will either confiscate your oil or define what your 'fair' profit is (no doubt it will be less than inflation.) |
| Posted by: Glenmore 2009-05-27 20:54 |
| #5 The energy minister for Qatar had a different opinion in April. His reasoning seemed reasonable to me. |
| Posted by: Seafarious 2009-05-27 14:21 |
| #4 Well, maybe another bow will lower that estimate. |
| Posted by: Kelly 2009-05-27 14:05 |
| #3 While last year's bubble was largely speculation which collapsed when the big banks also collapsed and the invisible hand of the market did its own margin call in the absence of government regulators, this time around I think we're seeing money finding its haven in commodities. Too much is being held because no one is going back big time into stocks and bonds when the American government nationalizes the assets and then uses it as rewards for its political backers. However, the money can't just sit either, so its being pumped into something that will still have demand and the Chinese don't look like they're going on a oil diet anytime soon. |
| Posted by: Procopius2k 2009-05-27 07:40 |
| #2 Him, of course. |
| Posted by: Redneck Jim 2009-05-27 04:58 |
| #1 Fair to who? |
| Posted by: Richard of Oregon 2009-05-27 00:23 |