What is the Saudi kingdom's stake in all of this and what do they want to see happen? The simplest answer to this is that they do not want the U.S. or any other country to Petropinch. Their worst fear is that we as a country and the industrialized world will become more efficient and become less dependant on the one resource that they dictate. One misconception that is out there is that the Saudi's are enjoying these high gas prices and reaping the benefits of the high price of oil, but instead it has them very worried and very upset with the way the U.S. financial sector is driving up the price, causing people to search for alternatives.
This weekend, the Saudi's will meet to discuss upping the production of crude in an effort to alleviate the skyrocketing gas prices that we are seeing. This comes after our President basically went over there and begged for more oil. This increase in production is designed to send a signal to speculators and is an attempt at bringing down the price of crude. If this does not work, an even clearer signal may be sent out that simply upping production is nothing more than a quick fix to a big problem.
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