[lbo-talk] Iraq to cost $600b?

JBrown72073 at cs.com JBrown72073 at cs.com
Tue Aug 12 20:52:16 PDT 2003


In a message dated 8/12/03 4:21:48 PM, lbo-talk-request at lbo-talk.org writes:


>Fascinating how oil prices haven't fallen along with Saddam's statue.
>Some warriors had claimed that cheaper oil would more than pay for
>the war, but it hasn't worked out that way. Gas did fall from $1.73 a
>gallon in March to $1.53 in June, but it's back up to $1.58 now - 14
>cents higher than a year ago and 35 cents higher than Dec 2001.
>
>Doug

Hmmm.

This, from an ejected listmember:


> From the hardcopy FT 080903:


>


> OIL PRICE RISE FIRES DEBATE AMONG ANALYSTS


>


> "US efforts to boost its strategic oil reserves have contributed to the


> recent surge in world oil prices and risks aggravating the drag on the


> fragile global economic recovery, according to some analysts and critics of


> the Bush administration.


>


> In addition, Washington, which faces a growing budget deficit, foregoes


> millions of dollars in royalty payments by filling the reserves while the


> price of oil is so hight. The government allows oil companies to make


> shipments to the reserves in lieu of paying royalties for extracting oil and


> gas on US territory....


>


> Many analysts disagree, saying the lack of exports from Iraq has been a


>far more significant factor in driving up prices in recent months.


>


> The US Energy Department disagrees, too....


>


> The US now depends on foreign suppliers for about half of its oil [actually


> about 55% with Canada, Mexico, Venezuela and Saudi Arabia being the top 4


> suppliers] and, with unusually low levels of commercially stored oil, it is


> finding itself vulnerable to price rises."

Jenny Brown



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