War-Wary Saudis Move to Increase Oil Market Clout

(Washington Post) The Saudis have boosted oil production by an estimated 1 million barrels a day above the quota set by OPEC. At the same time, the Saudi government has amassed a foreign exchange war chest in the range of $90-100 billion. If U.S. military action in Iraq goes awry, leading to higher-priced oil, within 30 days Saudi Arabia could flood the market with as much as 2 million barrels a day from wells it is not now using.

2002-12-02 00:00:00

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