The Price of Oil (and thanks, Jim H)

DamonMac at DamonMac at
Tue Dec 29 10:57:36 PST 1998

The US power structure wants stable oil prices as well (at least above $10 a barrrel) because low oil prices causes political instability/unfriendly regimes to take power (look at recent Venezuelan political events) in oil producing states. The low price also inhibits expanding production/exploration of new fields in this capital intensive industry. The Arab Anti-defamation Committee just hosted a panel discussion about this latter point. I think this is one of the main reasons the US has been pushing for the sanctions so hard; they fear prices/barrel in the single digits. This was also mentioned in the latest Middle East Report.

Damon Fodge

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