The Economy is Wonderful…If You’re the Saudi Royal Family

Tuesday, December 08, 2009
Ali al-Naimi

At nearly $76 a barrel, the price of petroleum has reached a “perfect” state, according to Saudi Arabia’s top oil official. “Inventories are coming down, the price is perfect and investors, consumers, producers are all very happy,” Ali al-Naimi, the Saudi Minister of Petroleum and Mineral Resources, told the media on Saturday. “There is nothing to worry about.”

Some oil experts in the U.S. took exception to al-Naimi’s attitude that things couldn’t be better. Author Raymond Learsy, who has been critical of America’s dependence on foreign oil, argued that the price of oil has been “manipulated” 258% since last year through cuts in production by oil-producing states. “OPEC, in conspiring to hold back over 4 million barrels of oil a day from the market, is thereby clearly colluding to impact oil’s price,” wrote Learsy on Huffington Post. “It is a willful policy seemingly tolerated by governments as they are not willing to confront this egregious exercise in market manipulation.”
-Noel Brinkerhoff


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