Featured Articles

Sep 02, 2010

• Forecast & Analysis -
• Top News Stories -
• Financial -
• Releases -
• Weather

Saudi Oil Min's $75/Bbl Oil Talk A 'Warning Shot'

Jun 01, 2009

[Dow Jones] Saudi Oil Minister Ali Naimi's talk of $75/bbl oil at last week's OPEC meeting was a "warning shot" to the US on energy policy, writes Greg Priddy of Eurasia Group. "The seriousness with which the Obama administration seems to be approaching the goal of reducing oil dependency and promoting and eventual transition toward electric vehicles seems to be causing concerns among Saudi officials about their hydrocarbons-based economy being fundamentally undermined," Priddy says. The Saudis seem intent on impressing upon Obama the importance of "demand security" during the US president's meeting with Saudi King Abdullah, the "implied point of leverage" being a reluctance to produce more oil as the global economy rebounds as well as the potential delay of more capacity expansion projects. Nymex July crude settled $2.27, or 3.4%, higher at $68.58/bbl. Oil's up 54% year-to-date. (madalina.iacob@dowjones.com)

Contact us in New York at 201-938-2030 or anna.raff@dowjones.com.