What Saudi Arabia should say about its oil | The National

What Saudi Arabia should say about its oil | The National:



"Saudi oil policy has generally been constructive in recent years. In 2007 and again in 2011, the Saudis rushed to add production when the market found itself short. And during the Great Recession, Opec cut production to support oil prices in the face of collapsing demand.



With the recent collapse of oil prices, however, the Saudi mission has become much harder. As a strategic matter, the Saudis were correct in allowing oil prices to fall without a production cut. Nevertheless, the pressure on the kingdom has been unrelenting, and the western press has pilloried the Saudis – and in particular Ali Al Naimi, the country’s oil minister since 1995 – as mean, heartless and inflexible. 




One senses these criticisms sting the Saudis. They value their reputation as a responsible member of the oil community and take their role of Opec patriarch to heart. Consequently, the Saudis find it hard to say no."



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