Are the Arabs unhappy the dollar has declined? Part of the agreement for $22-$28 oil was based on a strong dollar.
Could there be inflation trouble for Summers/Richardson?
Riyadh, June 7 (Bloomberg) -- Saudi Arabia, OPEC's biggest
oil producer, said crude prices are not yet high enough to warrant an output increase by the exporters group, Agence France-Presse reported, citing an unnamed Saudi oil ministry official. The Organization of Petroleum Exporting Countries agreed in March to increase supply by 500,000 barrels a day if the price of its crude oil index moves above $28 a barrel when averaged over 20 days, and
so far the average has yet to surpass that target, the official said. Saudi Arabia is concerned about current prices, though it wants to study the reasons for the recent rise in prices before agreeing to an output increase, the official said, AFP reported.
A Saudi Arabian oil ministry official in an interview denied
the AFP report though declined to comment further. |
