The kingdom will work to ensure there will be no “unwarranted and unnatural oil price hikes that could affect international economies, especially those of developing countries,” said [Information and Culture Minister Iyad] Madani.
There’s just something bizarre about a cartel protecting us from high prices. That’s not what cartels do. Cartels maintain a price as high as possible that demand doesn’t appreciably suffer.
This means that the price of oil has become high enough that its beginning to effect the world economy, leading to inflation and decreased demand. This talk about cutbacks is what’s really got OPEC moving. Not the price itself. So they’re going to increase supply just enough to bring the price back down back down to it’s “natural” (read, artificially maintained) price.
