Interesting piece in the NYT about the Saudis finally getting nervious and increasing oil production to lower prices. While you’d think that they would be happy with $140/barrel, the truth is that nefarious “alternative fuels” are becoming cost-competitive. They’re also planing on bringing a whole new field online next year.
The question is, how do the markets respond to this, and can the Saudis actually single-handedly keep prices down. That may not be possible any more.
Update: the markets have responded, and they obviously don’t think the Saudis have the goods here.
Now Playing: Episode 366
Obama staffs up, Detroit comes to DC and finally, Iraq and the US come to a security agreement.
Links Mentioned: Iraq SOFA … pros and cons of a bailout.
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