Saudi oil #2

(cont'd from yesterday's post)

Aramco, the oil company owned by Saudi Arabia, can control the global price of oil. If they flood the global market with oil, the price goes down - as it did in 2014. If they hold back on production of oil, the global price will climb.

image: moneyweek.com

"Some analysts have floated the idea of oil prices getting as high as $200 or even $400/bbl in the event of a disruption in Saudi's petroleum output . . . Prices like that would quickly push the global economy into recession, as it helped do in 1973. That is the power Saudi Arabia holds."

"No other entity in the world has as much power to move the oil markets. Saudi Arabia could quickly bring the global economy to its knees."

"Global economic security will continue to depend strongly on the cooperation of Saudi Arabia."