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Opinion
Julian Lee

Saudis Heed an Oil Warning From History

Sheikh Yamani said a high oil price would damage the kingdom's interests. Mohammed bin Salman seems to agree

After the failure of the Doha deal to freeze oil production, Saudi Arabia's output is now almost certain to rise in the coming months. It wants to regain market share in China and meet the summer peak in its own domestic demand without cutting exports.

As I wrote a couple of weeks ago, it's no surprise that Saudi Arabia refused to join the output freeze championed by Venezuela and Russia. It has little interest in seeing oil prices rise far enough to throw a lifeline to high-cost producers, who are beginning to buckle.