I'm finally putting the pieces together about this reigning insanity and I don't like what I see.

[grantcart]

113. Its astonishing how low a bar DU has reached when it comes to conspiracy claptrap.

Let's start with the premise

The Saudis get to spike the price of their oil as mentioned above

If you have been following Saudi's strategy on oil pricing for the past decade then you will see that they are the most active in stabilizing prices, not profiting from "oil spikes". Every single time prices have spiked the Saudis have increased production to bring it down. The reasons for this is not the least mysterious: With their economy basically based on the US dollar and their investments heavily tied into the SP 500 a spike in oil prices will cost them more in a loss in equity value than the increase of oil revenue and it will lead to a drop in demand when the economy tanks. They make more money by keeping markets stable.

If you google "Saudi takes action to stabilize oil prices" you can read hundreds of articles on the subject, its not exactly a mystery.

Here is one

http://money.cnn.com/2008/06/19/news/international/saudi_oil/

Saudi summit aims at oil prices

The world's largest oil producer, worried the escalating cost of crude will dampen demand, is convening a special meeting on Sunday to seek solutions.

NEW YORK (CNNMoney.com) -- Saudi Arabia this weekend will convene a special summit on oil prices that could lead to cheaper crude on the world market.

But a Saudi decision to produce more crude likely won't come without a demand: The Kingdom is expected to press the U.S. government to impose greater controls on oil trading and take steps to strengthen the dollar.

The world's largest oil producer, stepping out of its usual role as de facto leader of OPEC, will host representatives of big oil producing nations, consumer countries and companies.

The Saudis are widely believed to be concerned that escalating oil prices - crude hovered around $134 a barrel Thursday, nearly double what it cost a year ago - will cause a permanent drop in demand as consumers get more efficient or, worse, the global economy slows.

One sign of the Saudi anxiety: The country's oil production decisions, usually left to its oil minister, appear to have been put back in the hands the Royal Family, according to Antoine Halff, deputy head of research at brokerage firm Newedge.