OPEC members being broadcast by accident admit what I have been telling you for years - gas prices are rising, not because of a breakdown of supply and demand in the oil markets, but because of the falling dollar caused by financing the war on terra and Dubya's tax-cuts....
Oil leaders' private debate televised by mistake
Tim Webb in Riyadh
Sunday November 18, 2007
The Observer
Observer'Kill the cable, kill the cable,' shouted the security guard as he burst through the double doors into the media room at the Intercontinental Hotel in Riyadh, followed by Saudi police. It was too late.
A private meeting of Opec leaders, gathered this weekend in Riyadh for the cartel's third meeting in its 47-year history, had just been broadcast to the world's media for more than half an hour after a technician had mistakenly plugged the TV feed into the wrong socket. The facade of unity that the cartel so carefully cultivates to a world spooked by soaring oil prices was shattered.
Sometimes, such innocent mistakes can have far-reaching economic and political consequences. Commodity and currency traders said this weekend that oil prices would surge again tomorrow - possibly breaking the $101 per barrel record set in the late 1970s - while the already battered dollar would fall further on the back of the unintentional broadcast.
On Friday night, during what the participants thought were private talks, Venezuela's oil minister Venezuela Rafael Ramirez and his Iranian counterpart Gholamhossein Nozari, argued that pricing - and selling - oil using the crippled dollar was damaging the cartel.
They said Opec should formally express its concern about the weakness of the dollar when the cartel makes its official declaration at the close of the summit today. But the Saudis, the world's largest oil producers and de facto head of Opec, vetoed the proposal. Saud al-Faisal, the Saudi foreign minister, warned that even the mere mention to journalists of the fact that leaders were discussing the weak dollar would cause the US currency to plummet.
Unfortunately his words and those of everyone at the meeting were being broadcast via a live television feed to a group of astonished reporters. 'I couldn't believe it,' said one who was there. 'When I realised they didn't know they were being broadcast live, I frantically started taking notes.'
Opec only realised that the leaders' row was being broadcast to the world when the Reuters news agency put out a report of the argument.
The weakness of the dollar is one reason why oil prices are so high, as cartel members seek to compensate for their lower earnings. This means a further drop in the dollar is likely to be accompanied by a rise in oil prices.
Isn't this a crazy story? You couldn't make this up. I wish there was a camera in the room with the reporters.
If the technician who plugged the wrong socket isn't a Saudi then we really have a story here.
It should be obvious to everyone now why we are in bed with the Saudi dictators.
Last edited by BradLohaus; 11-19-2007 at 12:06 AM.
how long will the saudi's reign over opec last?]
how long will the saudi's holdout for the US dollar?
So long as we are the United States of America, they will
hold their dollars. These people are not stupid, by any
means. OPEC, well that is a whole different story. Might
want to ask Henry Kissinger about it.
The USA protects the Saudi ruling family; without US protection, some other tribe would overthrow them.
So they won't give up on the dollar any time soon, and will do whatever they can to keep OPEC from going to euros. But it still may not be enough.
Bad fiscal policy over a long period of time has consequences. It sunk the pound 70-80 years ago as well.
there is no doubt the pressure is building. i think it's possible that others could convince the saudi's of joining a more powerful alliance, for their own existence. we've given everyone a reason to reach out and explore a better path.
The war behind the war....
OPEC states seem to be standing behind the dollar.....for now...
Gulf states back dollar as Iran, Venezuela mount atttack at OPEC
World TribuneABU DHABI — Iran and Saudi Arabia are feuding over whether to peg crude oil exports to the U.S. dollar.
Iran has sought to move away from the U.S. dollar amid its sharp decline. Saudi Arabia said such a move could destroy the U.S. currency as an instrument of international trade.
The argument was aired at the OPEC oil ministers meeting on Saturday in Riyad. Iran, supported by Venezuela, proposed that the 12-member OPEC express concern over the fall of the U.S. dollar, which has dropped by 15 percent over the last year.
"There are media people outside waiting to catch this point and they will add to it, and we may find that the dollar collapses," Saudi Foreign Minister Prince Saud Al Faisal said on the eve of the meeting. "This is a sensitive issue. It will cause the dollar to drop further, thus complicating the problems we are facing from the dollar's fall."
The meeting has been covered by a record 900 journalists. The debate of the foreign ministers was seen in the media center until a Saudi technician pulled the plug on the closed-circuit broadcast.
Saudi sources said Riyad succeeded in blocking an Iranian effort to insert the currency proposal in the communique. The sources said the huge majority of OPEC states joined Riyad.
"We currently represent 40 percent of the oil output," Saud said. "The other producing countries must also have a role regarding the currency they are dealing with."
Doesn't matter that Saudi Arabia is 10x the terra threat Iraq and Saddam ever were as long as they do the bidding for the U.S. in OPEC the U.S. is stuck supporting the ruling Saudi hierarchy, many named Bin Laden...
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