Isn't it crazy. Everyone knows they are going to have to print more money and that will lead to inflation ... really ... are you going to pay more or less for a gallon of water or oil 5 years from now?
Yet everyone sells everything and rushes into the one asset that is guaranteed to go down and that they have no control over ... the US dollar. Warren Buffett has spoken extensively on this.
"Saudi Arabia’s target for reducing Brent crude to $100 a barrel may be difficult to sustain as declining production capacity and Europe’s ban on Iranian imports put upward pressure on prices, according to a former executive of Saudi Arabian Oil Co."
Saudi may simply be accommodating Bernanke, of course, but they also have a stake in the world pulling out of recession. There will be no pull out for years unless the energy price, and particularly the oil price, fall about 20% from today;s prices and stay there. That has been demonstrated in past price spikes - most economies can't cope with oil at $120, and the US feels the pinch at $80. Since that can't happen...