Forex Training Blog

Saudi’s Oil Minister was recently quoted as saying oil prices
are too high, and that the price of crude should be closer to
US$60 a barrel. He pins the blame on pessimists, gurus and
speculators. He asserts that today’s price has nothing whatsoever
to do with fundamentals. According to him, oil supplies are
adequate, Saudi Arabia’s production capacity is increasing on
schedule, and a potential OPEC production increase will be on the
table December 5 at a meeting of oil ministers. He further maintains
that OPEC has very little direct control over the price of oil,
which is influenced by a myriad of market forces (such as OPEC
supply, the U.S. dollar and geopolitical tension), and has not
tried to manipulate the market since oil crashed in the mid-1980s.
The International Energy Agency, which represents developed countries,
has slashed its predicted increase in oil demand, blaming it on the
effect of high prices.

(Source: Globe and Mail ROB, David Ebner, Nov. 14/07)