The chart also shows that the Kingdom of Saudi Arabia has not been entirely successful in stabilizing the price of oil. There are many reasons. The Organization of Petroleum Exporting Countries (OPEC), the main instrument through which Saudi Arabia can exert its influence on the oil market, does not represent all oil producers. Even within OPEC lack of discipline in adhering to agreed quotas has undermined the Kingdom’s ability to keep the price of oil within the range it believes to be fair to both producers and consumers. There have been political events, preeminently conflicts in the region, which have outweighed any possible effort to control the oil price. Nevertheless, the record shows, over and over again, that, when the price has plummeted or soared, it is the Kingdom of Saudi Arabia that has done its best to ameliorate the situation.
Click here to see Oil Price Chart.