Now with the death of Saudi King Abdullah, the flurries of questions began. What about the oil market, prices in particular, and what effect new leadership will mean for oil?
Well, complex answers don’t stop reporters from asking, except maybe in the case of Obama. The go to man is apparently Prince Alwaleed. He gave a robust defense of supply and demand, then shocked probably even OPEC countries by declaring we will never see triple digit oil again. In fact, he said we will never see hundred-dollar oil prices again.
See CNBC for video and article: http://www.cnbc.com/id/102363511
“I can assure you that Saudi Arabia is not using the oil price right now to impact the fracking industry in the United States,” he said, adding that “there’s an oversupply and demand is not so high.”
He insists there will be little change on current oil policy from a King Salaman government. He does have a grasp of understanding about the subject. It’s obviously true the current prices do hurt the Kingdom. It also hurts other oil-dependent countries. But his point was if they cut production that “gap” would only be filled by some other country. And it would. So it seems their production level alone is not running the market. The dynamics indeed have shifted since the US began producing more.
Now there’s one voice on the record publicly declaring the death of triple digit oil. That in itself should be a big deal. So stick a fork in hundred-dollar oil?