Aff - No Internal Link - Alt Causes to Saudi flood Alt cause to Saudi over-production—Arab Spring, Iranian sanctions, and a tight market Gamm 6/18 Forbes analyst, Arabia Keeps OPEC Spigots Open”, 6/18/12, “Saudi , Accessed 7/19/12, Chan) In the of financial and political turmoil throughout Europe, the Organization of Petroleum Exporting Countries (OPEC) met Production levels will remain at 30 million last Thursday in Vienna, Austria, to discuss the future of oil production.¶ The verdict? barrels per day (bpd.) Some countries were contributing to the overproduction of 1.6 million bpd (making for a grand total of 31.6 million The rationale behind this decision ultimately bpa), but at Thursday’s meeting, agreed to embrace the 30 million bpd ceiling.¶ stems from Saudi Arabia, which has been producing a staggering 9.9 million bpd Saudis in May. “The weren’t willing to cut production, especially with the Iranian sanctions they may not have slated to take hold, wanted to risk a tight market and send prices higher,” says Morningstar analyst Allen Good.¶ Having the most excess capacity, Good tells Forbes if any OPEC country were to cut production, it would be Saudi Arabia and since they refused, OPEC had to keep Oppenheimer & Co. analyst Fadel Gheit points to the Arab Spring as to why Saudi levels where they were.¶ Arabia doesn’t want to cut production. A drop in Saudi oil output would cause prices to rise (above $100 per barrel), threaten global economic health and lower oil demand. Arabia is caught between a rock and a hard place. While they don’t want oil prices to rise, “Saudi the Saudis are they to buy peace at home. They don’t want to be like Egypt, Syria or Tunisia with demonstrations,” he says.¶ Gheit says essentially peace by offering money to its citizens in response to the high and effort to “renting” prevent uprisings.
Aff - No Internal Link - Alt Causes to Saudi flood Alt cause to Saudi over-production—Arab Spring, Iranian sanctions, and a tight market Gamm 6/18 Forbes analyst, “Saudi Arabia Keeps OPEC Spigots Open”, 6/18/12, , Accessed 7/19/12, Chan) In the of financial and political turmoil throughout Europe, the Organization of Petroleum Exporting Countries (OPEC) met last Thursday in Vienna, Austria, to discuss the future of oil production.¶ The verdict? Production levels will remain at 30 million barrels per day (bpd.) Some countries were contributing to the overproduction of 1.6 million bpd (making for a grand total of 31.6 million bpa), but at Thursday’s meeting, agreed to embrace the 30 million bpd ceiling.¶ The rationale behind this decision ultimately stems from Saudi Arabia, which has been producing a staggering 9.9 million bpd in May. “The Saudis weren’t willing to cut production, especially with the Iranian sanctions slated to take hold, they may not have wanted to risk a tight market and send prices higher,” says Morningstar analyst Allen Good.¶ Having the most excess capacity, Good tells Forbes if any OPEC country were to cut production, it would be Saudi Arabia and since they refused, OPEC had to keep levels where they were.¶ Oppenheimer & Co. analyst Fadel Gheit points to the Arab Spring as to why Saudi Arabia doesn’t want to cut production. A drop in Saudi oil output would cause prices to rise (above $100 per barrel), threaten global economic health and lower oil demand. “Saudi Arabia is caught between a rock and a hard place. While they don’t want oil prices to rise, they to buy peace at home. They don’t want to be like Egypt, Syria or Tunisia with demonstrations,” he says.¶ Gheit says the Saudis are essentially “renting” peace by offering money to its citizens in response to the high and effort to prevent uprisings.
Oil_DA___Sophomores___NDI_20122.docx