Maybe it went something like this:
I don't know, maybe it is a coincidence that G.W. shows up in Saudi Arabia just now. Nevertheless, with an estimated 2 million barrels per day (bbl/d) in estimated excess capacity, Saudi Arabia is possibly the only single country able to materially impact the price of oil. It is lucky for the United States that we have something that they want-very cool bombs!
Moreover, beyond the military technology, the Saudi's have a lot of their petrodollars invested in the United States and they have an interest in protecting those investments. For example, Prince Alaweed, the King's nephew and world's 5th richest man by estimates, just took a big hit in his Citigroup investment and that had to hurt just a little bit.
Whatever you may think about the Saudi's "friendship" with the U.S., maybe the stars are lining up here in the short run. Maybe the Saudi's and a few other producers realize that it might be prudent to give the world a little markdown. I know the long-term supply\demand picture is bleak, but politics is never for the long-term.
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