our oil is sold on the market because it's worth more than what oil Co's would get for it if it was just for our use.
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As for the Saudi's saying they need oil at $55 a barrel for the Kingdom to survive, does that include the purchases of private aircraft, Ferrari's, and all the other outrageous personal purchases they make?
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those displays of wealth are usually from executives at companies like Saudi Aramco which is a state owned company...
http://www.cbsnews.com/stories/2008/...n4650223.shtml
you can watch the interviews at the link.
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the poorer nations in the OPEC cartel cannot afford to cut production otherwise they really will suffer
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yes they can...its called supply & demand, if the supply is cut & the demand rises then the price goes up, what the Saudi's get for a barrel of oil is what the Ecuadorian's get too.
they use oil as a weapon, but the slow down was easy to predict, it just happened to coincide with the ending of China's building boom (Olympics) and the ending of the 2008 Olympics.