Thursday, September 26, 2002


Would you treat this with any kind of seriousness? Me either. So why does the UK Telegraph promote the views of a Saudi mouthpiece and former OPEC groin gouger?

The price of oil is fixed by the cost of pumping (two fifths of bugger-all) and the rate of pumping. Pump faster and the price falls. Break the cartel and the price falls.

Iraq has a bug piece of proven oil reserves, enough to affect pumping rates. Estimates vary between $US9 and $US12, once the Iraqis are free to turn on the taps. They will take the most profitable path between speed of revenue and maintaining a price. What they will not take into account is the bleats of the OPEC cartel. Iraq has a shattered economy to rebuild, and massive war debts to pay off. They are not going to give a fat rat’s arse what the Saudis say.

Yamani knows the House of Saud fears an Iraq free to set their own pump rate. He is simply defending the interests of the right-wing religious fundamentalists who pay his salary. There is no possible reasons to treat his views as anything other than those of a seriously rich lobbyist acting to enrich is clients.

Thanks to Team Stryker for the link.

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