Saudis Wager On Higher Oil Prices

THEY’LL GET CLEAN AFTER JUST ONE LAST FIX: 

Saudis Wager On Higher Oil Prices to Drive Economic Diversification.

In its thrust toward diversification, the Organization of the Petroleum Exporting Countries’ de-facto leader needs to monetize massive reserves of crude oil. That means building up targeted noncrude sectors such as refined petroleum products, petrochemicals and minerals mining. From there, the kingdom would help finance a push into other sectors, such as tourism, manufacturing and financial services.

That goal helped to drive the Saudis toward pushing for substantial output restraints at the cartel’s meeting in Vienna this week. It was a step the kingdom has for decades avoided, as it pursued market share at the expense of prices.

A trip on Tuesday by Saudi King Salman bin Abdulaziz to a coastal industrial town helps illustrate the country’s commitment to its recently mapped economic path. The king made his first visit as monarch to the oil-rich Eastern Province this week to attend events marking a string of multibillion-dollar investments by local and foreign companies in petrochemical and mining projects.

Petrochemicals and mining? That isn’t a whole lot of diversity.