The unique characteristics of the Saudi bureaucratic system have seriously challenged the implementation of Saudi economic policies. Steffen Hertog argues that so-called “spoke and hub” bureaucratic system with growth of fief-like ministries since the 1950s has historically undermined the state’s capacity to implement economic policy such as “Saudization” program. This bureaucratic system has basic coordination difficulties in implementing reforms and long-term economic policies, which threaten the interests of each ministry. Saudi regime autonomy has been dramatically restricted by this bureaucratic system and it is difficult for the Saudi government to embark on economic policies at its own will without any interference of certain interest group. Saudi Arabia has tried to formulate its oil policy within the independent and consistent framework, because of the predominant role of oil revenue in the Saudi economy. To get rid of the political influence of any royal family group in the Saudi cabinet on oil policy, technocrats such as Sheikh Zaki Yamani, Hisham Nazer, and Ali al-Naimi, have been employed as the Minister of Petroleum and Mineral Resources. Although the Saudi regime tries to implement its oil policy at the discretion of the Ministry of Petroleum and Mineral Resources without any serious interference of certain royal family group, it is hard to say that oil policy has been free from the negative effect of the Saudi bureaucratic system. During the first half of the 1980s, Saudi oil policy as a “swing producer” to sustain certain level of oil prices in the world oil market was undermined by barter deals such as the purchase of ten Boeing 747’s engines and related equipment by bartering crude oil. This was a major breech of Saudi Arabia’s steadfast adherence to OPEC production and pricing discipline. Although Yamani opposed barter deals, he could not stop these activities because of the increasing influence of some royal family members, particularly Minister of Aviation Prince Sultan and his allies, on Saudi oil policy in the period of austerity. During the oil boom period when cash was more readily available, Saudi oil policy was not seriously challenged by bureaucratic fragmentation. However, when Saudi Arabia suffered from financial difficulties, its oil policy became vulnerable to the influence of certain interest group. By analyzing primary materials in the Ronal Reagan Presidential Library, I will demonstrate how this unique Saudi bureaucratic system undermined policy autonomy, particularly oil policy, in the first half of 1980s.