One would think that "with oil prices nudging $140 a barrel" the Saudis, the world's biggest producer, would be be playing like Scrooge McDuck and diving into their ever growing windfall of money.
On the contrary.
Applying lessons learned from the 1970s oil boom that pushed them into the world spotlight, the Saudi leaders are attempting to avoid the political and economic "perverse incentives" associated with the current oil shock, such as a global recession that would "trigger a sharp fall in demand for Saudi oil," and reduce the value of its own overseas investments, as well as the further ascension of Iran whom they view as "their main rival for regional influence." Which is why yesterday they lead an unusual meeting "of delegates from 36 countries -- including British Prime Minister Gordon Brown, the heads of nearly 10 international oil companies and top officials from the Organization of Petroleum Exporting Countries" in Jeddah to discuss the current volatile state of oil. The Saudis pledged to increase their output to address the supply concerns. Unfortunately this did not "nudge prices down" as they had hoped. I foresee more emergency meetings.