Reply #18: "To that end, the Saudis will likely seek more oversight of oil markets," [View All]

http://www.cnn.com/2008/WORLD/meast/06/22/oil.summit/index.html

snip: Sunday showdown

The meeting holds high stakes for both Saudi Arabia and the United States. If prices don't respond, the country's credibility will suffer, and with it any notion that someone has control over these record oil prices.

"Riyadh is seen as running out of options to regain control of the market," said Halff. "Failure to do so, it is assumed, could cause prices to leap even higher."

The Saudis will also expect something from consumer nations in return.

The Kingdom has long held that oil markets are well supplied, and that speculative investing is the real culprit behind high prices.

To that end, the Saudis will likely seek more oversight of oil markets, and perhaps even limits on the amount of contracts speculators can hold.

That's something consuming counties may give them. Several proposals along those lines have bipartisan support in Congress.

More difficult to deliver, and probably more important to the Saudis, is a stronger dollar.
snip