Business Insider
Barton Biggs, the storied hedge fund manager who runs Traxis Partners, recently had an interesting encounter recently over lunch with a Saudi businessman who explained to him the real motivations behind Saudi Arabia’s ramp up in oil production and why oil prices will likely continue to fall as a result for an extended period of time.
It’s all part of a plan hatched by the Saudi royal family, according to Biggs, who relays this conversation in a note just published by Itaú BBA. Biggs says he asked the man what his outlook for Saudi Arabia was in the medium and long term, and the man was particularly negative about this, even given the vast riches of Saudi Arabian oil wealth.
Here is what Biggs writes about his conversation with the Saudi man:
Categories: Asia, Economics, Iran, Iraq, Politics, Saudi Arabia, Socioeconomics, Trade
I find it very hard to believe that! Saudis are no fools. They know that with Iran and Iraq gone they would be a single, and very weak, rich country in the Middle East. The real reason could be the politics in the US and the resulting pressure on them to increase the oil production.