The Economist | Saudi Oil: Down (just a bit) with the price

The Saudis are worried that high prices are hurting the world’s economy
Oct 6th 2012 | DAMMAM | from the print edition

CRANES loom over the landscape in Dammam, a sprawling port city on Saudi Arabia’s Gulf coast. Shiny shopping malls are rising. Flashy cars stream across the causeway towards Bahrain and its nightlife. Young Saudis are making the most of their kingdom’s latest oil boom.

In a compound up the road in Dhahran sits Saudi Aramco, the world’s largest exporter of crude oil and the source of the country’s flourishing finances. Oil prices have averaged about $110 a barrel this year and for months Aramco has been pumping around 10m barrels a day (b/d), one of its highest rates. The Energy Information Administration, the American energy department’s statistical arm, says Saudi Arabia’s net oil income in 2011 was $311 billion. Prices were lower then; this year the country will earn even more. (…)

Read the rest of my piece here.

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