[Daniel_Plainview]

$this->bbcode_second_pass_quote('DantesPeak', 'I')f I may offer an alternative explanation: I think the Saudis are saying here that they need $70 oil to run their economy. I don't think the marginal cost of newly reworked fields is yet anyway near $70, but maybe $30 to $40, but that's just a WAG.

[DantesPeak]

$this->bbcode_second_pass_quote('DoomWarrior', '')$this->bbcode_second_pass_quote('DantesPeak', 'I')f I may offer an alternative explanation: I think the Saudis are saying here that they need $70 oil to run their economy. I don't think the marginal cost of newly reworked fields is yet anyway near $70, but maybe $30 to $40, but that's just a WAG.

[americandream]

So what we are looking at then is a combination of Saudi fiscal needs as well as an increasingly expensive (cost wise) trading stock? If so, whats the consensus on what portion of the desired premium is trading stock related?

[bodigami]

correction: $67 ...artificially pegged.

[mos6507]

$this->bbcode_second_pass_quote('americandream', '
')common sense tells me that oil inventory is most probably behind the global economies difficulties at the moment.

[americandream]

Mos

Have you ever wondered how severe the reset costing issues might have been for many of these families experiencing mortgage issues had oil prices not taken that significant hike they have these past past 4 years or so (along with the other inflationary impacts elsewhere in the economy)?

Whilst I don't disregard the sheer lack of business sense in the Islamic world with its convoluted notion of capitalism (and consequently wouldn't put it past them to balls up big time by squeezing their market out of sheer greed), methinks alls not well under the desert sands of the Arab Peninsula.