$100 Oil Price: The Last Temptation Of Saudi Arabia - Bloomberg:
"If you're seeking signs of inflation, look no further than the rapid escalation in Saudi Arabia's oil-price targets. Barely a week after Bloomberg News reported Saudi officials pushing to get oil up to $80 a barrel, some are now talking of $100, according to a report from Reuters. It's just talk, of course. And it's usually couched in terms of encouraging stability and investment and whatnot. Still, Saudi Arabia seems in no hurry to call off OPEC's supply cuts, despite the glut in OECD oil inventories having largely drained away. But inventories are just a proxy for what really matters to petro-states: revenue. On top of this, Riyadh has an ambitious reform program (along with a war) to fund and an IPO of its national oil company, Saudi Arabian Oil Co., or Saudi Aramco, to get done. Triple-digit oil would appear to grease both."
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