The Oil Mirage

Published



THE SAUDI ROYAL FAMILY has decided once again to pour oil on troubled waters. Faced with a congressional report apparently criticizing it for continuing to fund the mosques and schools around the world in which the violently anti-Western, Wahhabi version of Islam is taught, the Saudis persuaded their co-cartelists at last week’s OPEC meetings to continue pumping enough oil to keep prices within OPEC’s $22-$28 targeted range. The Bush White House, which had ordered the material critical of the Saudis classified and redacted from the report, was relieved. A cutback in Saudi production would have triggered a rise in already-high oil prices, and derailed the emerging economic recovery so crucial to the president’s reelection chances.

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