Yoshie Furuhashi wrote:
For Iran, Venezuela, and environmentalism, I'd like oil prices to
hover a little above $60 for at least a decade, but the nefarious
Saudi ruling class are opposed to me! -- Yoshie
<http://www.nytimes.com/2007/01/28/business/28oil.html>
January 28, 2007
Saudi Officials Seek to Temper the Price of Oil
BY JAD MOUAWAD
..
In the ultimately macro scheme of things the price doesn't matter.
Stability of price, or at least extrapolative stabillity of price is
more important.
Given enough time, and few price 'outliers', markets and economies will
adjust.
To a point.... ..and to go beyond this point I must ask:
"Is there an oil-economist in the house?"
One of the underlying reasons that PNAC and the neofasc... I mean
cons... hate the Saudis & OPEC, is their seeming inability to control
the volatility of pricing via supply mechanisms. Which is why I still
think they were dealing with UBL and AQ Khan to dirty bomb the Saudis,
destabilize the government, and try to wrest control of OPEC away from
them.
Osama would have loved to do that, and it would have been right up PNACs
oil-economics alley.
Oil prices are unlikey to any be less volatile even if under western
control, but they aren't going to mention that. They are thinking of the
pre-70s, when we had the oil to be energy sufficient, and the price
swings could be buffered by US controlled supplies.
It's way beyond that now.
Leigh
