The Real Reason For Saudi Arabia’s Oil Production Cuts

"It's not about . . . jacking up prices, it's about making the decisions that are right when we have the data," Saudi energy minister Abdulaziz bin Salman said this week, commenting on the decision by the Kingdom and Russia to extend oil production cuts first implemented in July. Naturally, when that happened, everyone thought it was about prices. The Saudi budget needs higher prices than $70 per barrel of Brent crude. It needs it because the Crown Prince of the Kingdom has ambitious public spending plans aimed at reducing…