Following up on oil prices
January 27th 2007 03:18
I wrote last week about Saudi Arabia's refusal to allow OPEC to cut oil production. Cutting oil production would, of course, increase global oil prices. That would put more money into the pockets of all oil-producing nations. I thought that Saudi Arabia (a Sunni country) was probably willing to take a hit on oil revenues because they didn't want to allow Iran (a Shia country) to have the increased revenues that would help them spread their hegemonic influence across the Middle East. Robert Windrem has now expressed the same line of thinking on MSNBC.com:
That's great news for the US on a couple of fronts: Lower oil prices are good for consumers and lower oil revenues for Iran will indeed hamper their malicious intentions in their own country and across the broader Middle East. And the fact the Saudi Arabia is now talking about INCREASING its production displays their intentions pretty clearly.
Even better news is that this could help bring down Admadinejad, whose fiery rhetoric continues to further isolate Iran:
So...I never thought I'd say this, but THANK YOU, Saudi Arabians. And keep up the good work. If we can keep the pressure up on the Iranian megalomaniac, we can take him down and force Iran back to a more tenable position without any shots being fired and without any blood being spilled.
Oil traders and others believe that the Saudi decision to let the price of oil tumble has more to do with Iran than economics.
Their belief has been reinforced in recent days as the Saudi oil minister has steadfastly refused calls for a special meeting of OPEC and announced that the nation is going to increase its production, which will send the price down even farther.
Their belief has been reinforced in recent days as the Saudi oil minister has steadfastly refused calls for a special meeting of OPEC and announced that the nation is going to increase its production, which will send the price down even farther.
That's great news for the US on a couple of fronts: Lower oil prices are good for consumers and lower oil revenues for Iran will indeed hamper their malicious intentions in their own country and across the broader Middle East. And the fact the Saudi Arabia is now talking about INCREASING its production displays their intentions pretty clearly.
Even better news is that this could help bring down Admadinejad, whose fiery rhetoric continues to further isolate Iran:
Ahmadinejad was elected on campaign promises that he would end corruption and better distribute the nation’s oil wealth. He has been unable to do either; now, with declining oil revenues, his job will be even more difficult.
One sign of this is the street demonstrations he has faced each time his administration has so much as floated the suggestion of a small increase in the price of gasoline. To counter his inability to fulfill his domestic promises, Ahmadinejad has played the nationalism/nuclear card, accusing the West of trying to stifle Iran’s legitimate energy needs.
How long and how successfully he can play these cards is debatable. Municipal elections last month unveiled a lot of dissatisfaction as opposition parties swept through municipal majlises throughout the country.
One sign of this is the street demonstrations he has faced each time his administration has so much as floated the suggestion of a small increase in the price of gasoline. To counter his inability to fulfill his domestic promises, Ahmadinejad has played the nationalism/nuclear card, accusing the West of trying to stifle Iran’s legitimate energy needs.
How long and how successfully he can play these cards is debatable. Municipal elections last month unveiled a lot of dissatisfaction as opposition parties swept through municipal majlises throughout the country.
So...I never thought I'd say this, but THANK YOU, Saudi Arabians. And keep up the good work. If we can keep the pressure up on the Iranian megalomaniac, we can take him down and force Iran back to a more tenable position without any shots being fired and without any blood being spilled.
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