CIAO DATE: 12/2008
October 2008
The Washington Institute for Near East Policy
Today, oil ministers from the Organization of the Petroleum Exporting Countries (OPEC) meet in Vienna to discuss a possible production cut. Originally planned for November, the meeting was brought forward because of falling oil prices. With the perilous state of world financial markets, seldom has an OPEC meeting been so critical for both itself and the world. Although hard hit by falling revenues, oil market conditions give Saudi Arabia the opportunity to show strong leadership, most likely by limiting any production cut. But the oil-consuming nations would prefer no cut at all, so any reduction would discomfit relations between Washington and Riyadh. The kingdom was unhelpful as prices rose above $100 per barrel months ago, and both presidential candidates have called for independence from foreign -- implying Saudi -- oil.
Resource link: PolicyWatch #1416: OPEC Deliberates: A Saudi Opportunity [PDF] - 12K