Wikileaks: Saudis Warned About Oil Speculators in 2007 and 2008 - 2 views
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Molly Fraser on 03 Jun 11Kevin Hall of McClatchy wrote about Wikileaks releases showing that the Saudis were concerned about oil market speculation leading to unduly high prices in 2007 and 2008. In 2008, we wrote that the Saudis said they did not see tightness in the market, and they also warned that prices were excessive.
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Molly Fraser on 03 Jun 11The wikileaks releases confirm the fact that the Saudis were not attempting to shift the blame to speculators while privately enjoying profit, but were genuinely concerned over the effect that speculators had on spiking market prices. 2007/2008 saw a jump in oil prices that was unprecedented at the time; in 2007 alone, the price of oil was $58.74/Bbl in February, reaching $65.08/Bbl by June of the same year.
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Molly Fraser on 03 Jun 11Ultimately this merely reaffirms anxieties that oil prices are likely at the whim of speculators rather than actual market availability. Unfortunately, markets are partially based on faith in one's investments; It would be wise in the future to trust the Saudi reports and take into consideration that everyone in the worldwide oil market- including western businesses- are in it for the money.