If the leaders of Saudi Arabia have their way, oil could be priced at $80/barrel once again soon. With economic activity picking up in America, and OPEC continuing its policy of production restriction, that target is closer than it’s been for some time. Bloomberg‘s Javier Blas reports:
Saudi Arabia wants to get oil prices near $80 a barrel to pay for the government’s crowded policy agenda and support the valuation of state energy giant Aramco before an initial public offering.
In conversations with OPEC delegates and oil market participants, Saudi officials had been careful to avoid pinpointing an exact price target. Yet people who have spoken to them said the inescapable conclusion from the conversations was that Riyadh is aiming for $80.
The private discussions, relayed by several people who met the Saudis over the last month and asked not to be named to protect their relationship with the kingdom, chimes with the hawkish tone in public from Saudi officials.
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