By Senior Analyst Talal Kapoor
The June 22 Jiddah Conference was promoted as an effort to calm the markets, and the Kingdom promised to find effective means to deal with the sudden rise in the price of crude. Yet there was no bridging the sharp divide between oil buyers (who demand higher production in order to bring down prices), and oil producers (who believe that production levels are realistic, and blame speculators for the driving up of price).
By Senior Analyst Talal Kapoor
As the price of oil climbs to unprecedented levels, the Kingdom faces increasing pressure from key allies. Yet, consistent with an emerging self-confidence, Saudi Arabia sees an opportunity to exploit the present crisis for its own political gain. Balancing the economic and political costs, however, has split the royal family.