Ali Al-Naimi, the Saudi oil minister and de facto head of the OPEC oil cartel said, when asked directly what the cost of extracting the oil in Saudi Arabia is, “It is probably less than $2.00 to produce a barrel”, but then 60 minutes stated Saudi Arabia needed $55 a barrel to support the cost of running their country. Not to run the business, to run the country! This clearly demonstrates what we have been saying. They are a one product nation. If oil dies, their economy dies.
Ali Al-Naimi went on to say, “Any price must be good for the producer, the consumer, for the investor, the oil companies”.
Certainly, the consumer was not OPEC’s concern while oil dependent nations were begging for more supply north of $140 a barrel. At that juncture, OPEC was nowhere to be found. Had they clearly stated the facts, oil would have never risen above $100 a barrel!
had enough yet?