Arabia Quote by Michael Hudson
“High prices can be the result of speculation, and maybe plunging prices can be attributed to the end of speculation, but low prices over time aren't caused by speculation. That's oversupply, mainly by Saudi Arabia flooding the market with low-priced oil to discourage rival oil producers, whether it's Russian oil or American fracking.”
About This Quote
Source Book: Super Imperialism, 2003
Oil prices rise from speculation but fall when oversupply, often due to Saudi oil floods, dominates; low prices stem from excess, not speculation.
In simple terms: Oil prices drop due to oversupply, not speculation.
Key Takeaway
Watch supply dynamics.
Themes
economics
energy markets
geopolitics
Mood
analytical
critical
Type
economic
geopolitical
When to use this quote
- investment
- policy analysis
- energy planning
- global trade
- environmental impact
Key Concepts
price speculation
oversupply
market manipulation
Questions to Reflect On
- How can policymakers curb oversupply?
- What role does speculation play in price spikes?
A Different Perspective
Speculation still influences short‑term volatility.
![“We're defending Saudi Arabia? And with all of the money they have, we're defending them, and they're not paying? All you have to do is speak to them. Wait. You have so many different things you have to be able to do, and I don't believe that Hillary [Clinton] has the stamina.” quote by Donald Trump](https://sms4smile.com/quotes/img-quotes/0a5/donald-trump-18_able_we-re-defending-saudi-arabia-and-with-al_72517.jpg)
