The Saudis walked out of an OPEC meeting.  The cartel made a motion to cut oil production, and the Saudis declared they would not honor the motion.  Most of the rest of OPEC is pointing to the recent price drop as the excuse, but the Saudis are afraid that winter will cause a spike, and if petroleum prices put too much pressure on the economy, it'd collapse and oil prices would go with it. 

Basically the way it works is that Saudis and Gulf States recognize that if the high prices keep up, the US is going to seek out alternate energy sources and our own oil sources.  Countries like Iran and Venezuela need the high prices today to fuel their social policies and military activities, and can't worry about tomorrow's economy.  So they now have a split, and things fell apart in the OPEC meeting as a result, this should get interesting.

Posted by: doubleplusundead at 11:09 AM | Comments (7) | Add Comment
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