Don’t Look to the Saudis for Gas Price ReliefPosted on June 7, 2012 by Christopher Henwood in Crude Oil, Energy, Eurozone, Gasoline, Iran, OPEC
For the average consumer an OPEC meeting might seem very far removed from their day to day life. But in fact, what happens at those meetings and among the members of the oil producing cartel can have a very big impact on the price we pay for gasoline at the pump.
While oil and gas prices can be complicated and there is a danger in over-simplifying the various factors that determine price, the amount of crude oil that OPEC pumps onto the world market is a biggie. My old employer, Reuters, asked me to shoot a video for them, explaining how the OPEC meeting next week could impact you and I and what we pay for our gas. The key player to watch will be Saudi Arabia. They are the largest producer of oil in OPEC and can the ability to pump more or less oil with relative ease and are a close US ally. It’s a complicated relationship and sometimes the Saudis face a conflict between serving their own interest and those of the US.