ABSTRACT
The Saudi strategy has been to maximise oil revenues by maintaining production at a high level. Saudi Arabia is determined that its own oil production should not fall below 8 mb/d and that it should retain its 35" share of Organization of Petroleum Exporting Countries (OPEC) production. This is partly because of Saudi concern about the effect of this on the West's industrialised economies, the consequences for future oil demand, and the US-Saudi relationship. Since 1991, Saudi Arabia has assumed a dominant role in oil politics. The record of the past few years has tended to demonstrate that Saudi Arabia is capable of and willing to cooperate with Iran on questions of oil pricing and production. Those Iranian officials who can negotiate a cooperative agreement with Saudi Arabia on oil production/pricing may be in no position to offer Saudi Arabia the pragmatic quid pro quothat it seeks in other areas.
