In the reporting of the interview with the Saudi oil minister that I've seen/heard today, everybody is focusing on the fact that he suggested the price of oil will be $40 to $50 this year based on demand. And the tone of the commentary is one of shock.
I think a lot of people could have told you that (i.e. people mentioned in prior posts).
What was a surprise to me was his suggestion that they lower the quality of the crude in the OPEC basket to make the price look lower, which isn't mentioned in the reporting.
Ah, what do I know..
Here's his quotes:
"The seven crudes that constitutes the OPEC basket are not really representative of the crudes that OPEC produces, and so there'll be two changes, probably. One, are the types of crudes in the band, and then of course, possibly a new band."
"Where the price is today, between $40 and $50, will probably be with us throughout 2005. I'm always reluctant to make a prediction as to where the price is. But just looking at fundamentals, inventories, supply, demand and the worldwide desire for a stable oil market; I believe it will be in this band."