Archive for the ‘Saudi Arabia’ Category

We’ve all engaged in the speculation wars as to the reason for oil prices’ astronomical rise in such a short time.  The four most common arguments are:

1:  questionable speculators activity
2:  decreasing supply and increasing demand - and peak oil theories
3:  Iraq or Middle East conflicts and terrorism
4: falling value of US dollar

I’m neither an accomplished economist, nor an oil expert.  But I’m one curious individual, so I set out to see if I could shed some light how just what to believe.  There’s considerable amount of data here (meaning long! a week’s worth!) but I’ll share my research on the four issues mentioned above… and my attempt to put it all into perspective…. sans politics. (the “gasps” abound, no doubt…)

To agree on a solution, we need to know the cause of the problem. 

The article that sparked my increased motivation and quest came from Australia’s Herald Sun yesterday, Speculators to blame, says OPEC”.

The monarch, who said Saudi Arabia would give $US1.5 billion ($1.57bn) to efforts to ease energy shortages in poor nations, told the 36-nation summit his country was “very concerned” about consumers worldwide.

He blamed increased oil consumption and taxes on fuel, but said: “Among other factors behind this unjust increase in oil prices is the abhorrent act of speculators acting for their own selfish interests”.

The most common thought on the speculators is that the buying frenzy is creating a positive feedback look, driving the prices artificially high and creating an economic bubble - much as was done with the housing prices in both the UK and USA. Along that line of thought, Congress is busy crafting legislation aimed at regulating speculators, while McCain has called for “thorough and complete investigation of speculators” to see if they’ve driven up oil prices.

Alan Reynolds termed this knee jerk reaction as a “witch hunt that’s clearly about oil” in an article that ran in the NY Sun June 20th, titled “Scapegoating the Speculators”, and was reproduced on the Cato Institute site.Reynold’s debates OPEC’s accusation. Speculators, purchase the contracts and sell those before their expiration date, in the hopes of making profits. Sometimes this entails betting the prices goes down instead of up. Or as he puts it, Guess wrong on the direction, and you lose money. Read the rest of this entry »

Black GOLD

Yes, as oil prices are now past $120 a barrel, market watchers are now looking foward to $200 barrel oil, it’s causes and effects.

LINK

Maybe it’s because of all the Bush Derangement Syndrome rantings that have left my eyes in a near-permanent rolling motion, but I have to wonder:

If the Iraq War was all about oil [can I get a "NO BLOOD FOR OIL"?], then what will have the more devastating effect on oil prices next year: staying in Iraq and stabilizing the place, or retreating and letting it collapse?

Lord help me, but…I don’t see “Iraq” anywhere in this article.  Could it be [COULD IT BE?!] that the war in Iraq isn’t about oil?  Could Operation Iraqi Freedom be about Freedom?  I know, it’s crazy talk, but the coffee’s strong this morning, so I wonder, while the candidates are whining and pandering and bribing their way to nomination (abomination?), what idea addresses the cost of oil in 2009 best:

  • a gas tax holiday
  • a windfall profits tax on any company that makes too much money (oil companies to start with, computers to follow?)
  • staying in Iraq to stabilize it
  • retreating from Iraq and gambling on its collapse (if it does collapse post withdrawal, there is no doubt at all that a subsequent third invasion would be infinitely more costly in blood, treasure, and duration)
  • Or perhaps something else?

What’s the best thing the next President can do to keep oil from reaching $200 barrel next year, and what’s the best course in Iraq given the prospect of $200barrel oil?

Additionally, what should the next President do in terms of Iran given the prospect of $200 barrel oil next year?

Not everyone is a political junkie, and even few political junkies even like reading the government reports on this or that.  However, when it comes to war, shouldn’t we all have some sort of documented list of reasons for war as well as periodic updates?  I don’t just mean members of Congress (the body that declares and authorizes war) or the President (the man who gets several detailed, classified updates throughout every day).  I mean every American.   I’d like to see us all get copies of it in the mail with the checks the Democrats’ Congress is sending us for economic stimulus. Read the rest of this entry »

What a sad story, but in this instance the sentence fit the crime:

Saudi Arabia on Wednesday beheaded a couple convicted of torturing to death a nine-year-old girl, including burning her with a red-hot spoon and beating her with a metal pipe, the interior ministry said.

Saudi Nashat Haji, 32, was beheaded by the sword for murdering his daughter, Khosoun, said a ministry statement carried by the official SPA news agency.

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While political pundits, politicians, hundreds of millions of Americans, and millions more around the world watched Super Tuesday results with confused and bated breath yesterday, a bigger and more important story went almost completely unreported. The Director of National Intelligence (DNI) presented Congress with yet another National Intelligence Estimate (a summary of opinions presented by a committee of representatives from all 17 American intelligence entities).

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Bush holds the King Abdul Aziz Order of Merit — a token from Saudi Arabia’s King Abdullah, right, whose family exercises almost absolute rule. Among ordinary Saudis, Bush is less popular, largely because of the Iraq war and U.S. support for Israel.
Kevin Lamarque - Reuters

Interesting new poll:

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