Neoconservative Resurgence in the Age of Obama

[Nbadan]

"Right now OPEC's policy on lower demand is to jack up the price."

also done when US$ is low, since they get paid in US$ by oil purchasers.

But last summer, when the oil was $140/barrel, the Saudis said they had oil to sell, but no buyers, so they claimed it wasn't tight supply that drove up the price.

commodity traders (eg, Wall St) play a significant (secret) role in oil (other commodities) price volatility. Just another way "free markets" and massive global liquidity flows us all over.

That's exactly how speculators rigged the system...the Oil was sitting there, but it was a lower grade crude, which would have had the duel effect of raising production costs, while eventually lowering the price at the pump for consumers, i.e. profits...

[spursncowboys]

What incentive does Iraq, as a member of OPEC, have to keep oil prices low for the US?

We are a huge consumer of their commidity. Furthermore, we have the oil to to ourselves and if political wind swing will start relying on our own oil, in which their demand will directly compete with russia's pipelines. Also there is no guarantee that iraq will stay with opec.

[ChumpDumper]

We are a huge consumer of their commidity.

High demand is actually incentive to raise prices.

Furthermore, we have the oil to to ourselves and if political wind swing will start relying on our own oil, in which their demand will directly compete with russia's pipelines.

Who says we have the oil to ourselves?

Iraq has auctioned off more proven oil reserves in the past six months than are collectively held by the United States, Mexico, and the United Kingdom.

But U.S. oil companies have signed surprisingly few development contracts – foreign rivals have swooped in to scoop up major deals.

Take last weekend, when Iraq wrapped up the biggest oil-field auction in history. Major new deals were announced by Europe's Royal Dutch S PLC (NYSE: RDS.A , RDS.B), OAO Gazprom (OTC ADR: OGZPY), Lukoil (OTC ADR: LUKOY), China's China National Petroleum Corp. (CNPC), and Malaysia's Petroliam Nasional Berhad (Petronas).

The U.S. oil majors – ExxonMobil Corp. (NYSE: XOM), ConocoPhillips (NYSE: COP) and Chevron Corp. (NYSE: CVX) – were nowhere to be seen.

http://moneymorning.com/2009/12/16/iraq-oil-companies/

It's Iraq's oil to sell to the highest bidder. Their incentive is to get the most money for it.

Also there is no guarantee that iraq will stay with opec.

That would be in neither Iraq's interest or ours really.

[Winehole23]

So what danger is Iran to the US?

There is a sizeable presence of US forces in their neighborhood.

Just guessing, this is what mogrovejo ostensibly means by suggesting that Iran is somehow a threat to the US.

[Winehole23]

I have never read a post by you that writes positively about any kind of foreign policy that intervenes in anything.

So?

Are you familiar with Taft Republicanism?

Why not let someone else fight, and come in afterward with trade and technical expertise?

[Marcus Bryant]

Any foreign policy that doesn't begin and end with the Pentagon taking over a state = "isolationism" to many citizens.

[spursncowboys]

So?

Are you familiar with Taft Republicanism?

Why not let someone else fight, and come in afterward with trade and technical expertise?

That sounds like a great idea. Not for all situation though. As in Greece after WW2, are you against that kind of involvement? Where we train the fighters? I don't think our foreign policy should end though with non-interventionism. The fact is that alot of our allies have not made weapons to protect themselves because of us. We cannot just leave them to the wolves. Are you even against selling weapons to our allies?

[Winehole23]

Are you even against selling weapons to our allies?

No.