Tuesday, August 02, 2005

What's behind the oil price rises this week...

Buried in a Marketwatch report, was this tidbit:

The reality is that "Abdullah's been in charge for 10 years and won't change policy," said Michael Lynch, president of Strategic Energy & Economic Research Inc.

Defense Minister Sultan bin Abdulaziz was nominated crown prince, but "with Abdullah and Sultan both in their 80s, it is important for the Saudis to identify a younger man as future leader of the kingdom," said James Williams, an economist at WTRG Ecnomics in a recent note to clients.

Looking ahead, "oil will become more and more sensitive to geopolitical rumblings the smaller the spare capacity gets. Therefore volatility is expected to increase toward the last quarter of this year as traditionally consumption starts to pick up," analysts from Fortis Bank wrote in a research note.

Clearly the Saudis are like the Soviets in the early 80's before Gorbachev. They're running out of old people to keep things as they are.

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