Getting Paid

More

Saudi Arabia has a plan to boost their oil production in the near future. According to the NYT's Jad Mouawad that "was seen as a sign that the Saudis are becoming increasingly nervous about both the political and economic effect of high oil prices." But couldn't we just see it as a sign that you can make more money than ever selling oil these days so it became worth the Saudis' while to find ways to boost production? That's the market in action. The days of OPEC seriously enforcing production quotas on its members seem to be long gone in these days of rising prices and still steady demand.

Note, however, that though this kind of measure may well bring the price of oil down, it seems to cut against the notion that there's a speculative bubble in oil prices. The Saudis wouldn't be doing this if they thought an oil price crash was in the works.

Jump to comments
Presented by

Matthew Yglesias is a former writer and editor at The Atlantic.

Get Today's Top Stories in Your Inbox (preview)

Sad Desk Lunch: Is This How You Want to Die?

How to avoid working through lunch, and diseases related to social isolation.


Elsewhere on the web

Join the Discussion

After you comment, click Post. If you’re not already logged in you will be asked to log in or register. blog comments powered by Disqus

Video

Where Time Comes From

The clocks that coordinate your cellphone, GPS, and more

Video

Computer Vision Syndrome and You

Save your eyes. Take breaks.

Video

What Happens in 60 Seconds

Quantifying human activity around the world

Writers

Up
Down

More in Politics

Just In