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)

When Will Robots Take Over the World?

"In a sense, we're already becoming cyborgs."


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

Is Wine Healthy?

James Hamblin prepares to impress his date with knowledge about the health benefits of wine.

Video

The World's Largest Balloon Festival

Nine days, more than 700 balloons, and a whole lot of hot air

Video

The Origins of Bungee Jumping

"We had this old potato sack and I filled it up with rocks and dropped it over the side. It just hit the water, split, dropping all the stones. And that was our test."

Video

Is Trading Stocks for Suckers?

If you think you’re smarter than the stock market, you’re probably either cheating or wrong

Video

I Spent Half My Life Making a Video Game

How a childhood hobby became a labor of love

Writers

Up
Down

More in Politics

Just In