In recent weeks we have seen the price of oil come down. Saudi Arabia has boosted production to levels of 1990. The Saudi oil minister in May said oil was over priced and thought Brent should be around 100 a barrel. And with economies here and in Europe feeling pain, along with the talk in the election heated up about oil and energy costs, Saudi is pushing for lower prices. Obama has been taking a beating for gas prices. When have they made such bold statements and stands?
Usually we get vague comments from them like the mantra that markets control prices and they have little influence. I.e. ‘talk to someone that cares’.
What is it good for?
Far from the positive relief it offers US consumers, there is another effect in the Mid East. It is putting strain on Iran. According to reports they need 117 dollar a barrel to balance the books. Naturally, they are one of the loudest protesting the production increases. Too bad, they need high levels to balance the books. For years we were told Saudi’s and OPEC can’t help with high prices. And Saudi production has always been so secretive. Now they are boasting and advocating increases.
Let’s see how long before Obama boasts about lower oil/gas prices, calling it a stimulus for the economy. Too bad he won’t take any credit for the current economic or energy conditions. His so-called “all the above” strategy really means ‘some of the above’.