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Monday, October 02, 2006

The Saudi Pledge?

Via email, something for the conspiracy theorists from the Financial Times:

White House ‘ignored’ Iraq warning, by Caroline Daniel, Financial Times (free): The Bush administration was shaken on Friday by revelations from a new book by Bob Woodward, the veteran investigative reporter... In a claim that could fuel conspiracy theories about the recent oil price decline ... Mr Woodward described a conversation between Prince Bandar bin Sultan and Mr Bush in which the former Saudi ambassador said he could ease oil prices ahead of the elections. “They could go down very quickly. That’s the Saudi pledge. Certainly over the summer, or as we get closer to the election, they could increase production several million barrels a day,”

Jim Hamilton discusses, and dismisses, another conspiracy theory here. I'm not much of a conspiracy theory type, and I haven't heard anything indicating the Saudis are increasing supplies, only that they aren't cutting production like Nigeria and Venezuela plan to do, e.g. see "Oil falls 3 percent, healthy inventories weigh" from Reuters:

Some traders said the planned cutbacks by Nigeria and Venezuela would have little impact on prices unless larger producers in the Organization of the Petroleum Exporting Countries also said they would join the move. "The only significant thing would be if Saudi Arabia announced they were going to cut output, which they haven't," said Christopher Bellew...

I'm not quite sure what, if anything, to make of Woodward's report so I'll turn it over to you.

    Posted by on Monday, October 2, 2006 at 04:45 PM in Economics, Oil, Politics | Permalink  TrackBack (0)  Comments (21)

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