Oilfeeds.com

A report published in the Emirates Business 24/7 detailing Saudi plans for increasing oil production looks very much like it came directly from the Saudi Aramco PR department.  Each of the four fields discussed in the report has been extensively analyzed in prior posts.  What is interesting is partly that this one report summarized the entire Saudi program in one place.  But even more interesting is that the report was issued at all.  It seems to be designed to assure the oil market that it will be adequately supplied for the next few years at least, thus eliminating oil market pressure for higher prices. 

Why would the Saudi’s want to push oil prices down?  One reason might be to help the Republicans win the White House in November.  The King does a lot of strategic thinking, planning, and acting in coordination with the President of the U.S.   It is not unlikely that he would like to see a President be elected who  he believes will continue the past 60 years of confidential and cooperative relations.  There is good reason to think that his relations with the Bush family going back decades has convinced him that Republicans will continue to honor the special U.S.-Saudi relationship.  Moreover, since the relationship is based on personal  credibility, it is not unreasonable that the King may have assured Mr. Bush that he will in fact lower oil prices in advance of the U.S. election in exchange for Mr. Bush’s assurance of continued U.S. guarantees of Saudi security.  The King may be virtually required to make good on his promise.