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BTW, Ambassador Prince Bandar has been hinting around Washington that the Saudis view $25 per barrel as a target equilibrium price, and he expects his government to open the spigots over the summer (probably when they feel it can most inure to the benefit of the royal family).
There are a variety of factors that might lead the Saudis and certain other producers (like the Kuwaitis) to prefer lower prices, some cynical, some practical, so this could happen. Among others, higher oil prices make exploration more profitable, and new deposits could reduce dependence on the Persian Gulf. Also, higher oil prices make extraction in otherwise difficult places like the Gulf of Guinea more feasible and profitable, leading to more investment in places like Equitorial Guinea and Nigeria. Also, many oil sheikhs are diversified - the Kuwaiti royal family is one of the largest shareholders in Daimler Chrysler, a maker of gas-guzzling luxury cars, SUVs and minivans, whose sales suffer when gas prices are high. A more cynical reason to add to the mix is that the Saudi royal family may have no interest in seeing Iraq awash in the oil revenues that could make it a stable democratic role model for the Arab world.
Sen. Kerry might not want to hitch his electoral campaign horse to high gas prices, any more than he has to jobs, in light of the latest numbers and forecasts.
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