The Price of Oil (and thanks, Jim H)

Max Sawicky sawicky at epinet.org
Tue Dec 29 13:04:25 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.

Stability is not what you get by blowing things up.

mbs



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