OPEC bitchslaps Bush

[bungrider]

Quote from AAAintheBeltway:

So you propose what, domestic price controls on oil?

incidentally, has anyone noticed that the other arab nations, at least in the headlines, have seemed fairly complicit with the siege of baghdad.

saddam had been selling oil to the russians by undercutting the price of OPEC on the black market..

you draw your own conclusions.

 

[Pabst]

Quote from ARogueTrader:

When there is a windfall profit by the oil companies because of an unnecessary war waged by Bush & Company, you think that is the American way?

OPEC is not the real enemy. Exxon Mobil is.

Gain in shares of XOM from 10/03 through today 39%
Gain in SPX from 10/03 lows is 43%

So big oil has UNDERPERFORMED the broader market. Not to mention I used the worst performing major index fo this comparison!

 

[BloodTrader]

Quote from AAAintheBeltway:

http://news.ft.com/servlet/ContentS...y&c=StoryFT&cid=1079420027958&p=1012571727085

This FT story reports that OPEC members, including Saudi Arabia, are pressing the cartel members to stick with planned production cutbacks. The avowed aim of these members is to keep prices at current levels.

Separately, Democrat candidate John Kerry leveled a blistering attack at President Bush for high gas prices, although he was characteristically vague about what he woiuld do to make things better, other than saying Bush should force OPEC to increase production. Bush is currently running ads that recount Kerry's past support for higher gas taxes.

Let me see if I understand this. We saved the Saudi's butts from Saddam Hussein and this is the gratitude we get? Oh yeah, other than their support for OBL and sending terrorists here to conduct the 9/11 attack.

And what about Iraq? They still belong to OPEC. How is that helping us? Shouldn't we pull them out of it and start trying to break up this ring of thieves? Why don't we start putting some real pressure on the OPEC members? They are stealing billions from us. They are nothing but common crooks and we should treat them as such. I wonder how many value OPEC over their relations with this country? Maybe it's time to find out.

Maybe it's time for Bush to demonstrate some actual leadership and stop talking about it.

I don't understand how the Saudi's can do this. They owe us big time and you'd think Bush would have some clout here.

m

 

[ARogueTrader]

Check out market cap rankings before GW took office...

Quote from Pabst:

Gain in shares of XOM from 10/03 through today 39%
Gain in SPX from 10/03 lows is 43%

So big oil has UNDERPERFORMED the broader market. Not to mention I used the worst performing major index fo this comparison!

 

[Mecro]

Quote from bungrider:

incidentally, has anyone noticed that the other arab nations, at least in the headlines, have seemed fairly complicit with the siege of baghdad.

saddam had been selling oil to the russians by undercutting the price of OPEC on the black market..

you draw your own conclusions.

Uhhmmm, nooooo. Saddam was hated in general by almost everyone. No one wanted him in power because of the forever existing never ending Sunies vs Shiites vs Kurds conflicts. Saddam was a Stalin figure and would have moved to enslave all of Middle East if he was given the chance. Besides that, Saudi royalty or ruling class is reliant on US military bases for safety of their power since most of the country is in shambles and ready to revolt. Iran HATES Iraq with or without Saddam. Syria is weak and hates USA but wtf are they gonna do? Kuwait HATES Saddam. Jordan is USA tolerant. The OPEC nations really had no choice but stand aside. The wheels in motion were set long ago because of OPEC themselves
Iraq's oil production was ridiculously capped and whatever oil could have been sold to USSR (not Russia at the time) would be insignificant. Russia main energy source is natural gas anyway (hmm Gazprom???). In general, Russia does not care except for the loans made to Iraq, equipment and general world politicking.
Saddam sealed his fate when he converted his main dollar reserves to Euros (nov 2000 I think). OPEC has considered and pretty much foreshadowed the switch from the dollar to the Euro as reserve currency, the same crap they have been threatening now. But since Iraq is in USA's control, that scenario is covered since OPEC and their Euro strategy can easily be destoyed by pumping out Iraq oil for cheaper cost in dollars.

I think if I was OPEC and I had the alternative of Saddam vs USA, I would go with USA. Saddam is too unpredictable and crazy. US will keep still unless OPEC makes the Euro switch. The big US oil companies are not interested in low oil prices and will keep up artifical price caps just like OPEC does. But it's not in their interests either to have OPEC spike up oil prices and disturb the economy.
It's a chess game and Saddam did not know how to play it.