From RJ , FYI a very good explanation of how Saudi budgetary needs drive their desire for $40+ oil - link below, just a few pages packed with excellent info on Saudi budget, debt, and economy.
hXXp://www.raymondjamesecm.com/Docview.asp?file=http://beacon1.rjf.com/researchpdf/iEne012405b_0559.pdf
One provocative conclusion that can be drawn from the report (not that RJ is necessarily trying to make it) is that lower oil revenues lead to budget squeezes in petro-economies, which in turn result in lower social spending and a concomitant increase in civil unrest.
Could it be that $10 oil in 1998 resulted in Saudi unrest and deep resentment toward the Western oil-consumers, and ultimately to the kind of hatred that allowed psychos to attack us on Sept. 11th?
Cheers
SALTY
NEO
nuenco nl
