leverage (was Re: Bina on Iraq)

[s-t-t at juno.com]

Christian Gregory wrote:
> But Doug, don't you think it's strange to use this opposition--ie
> competitive, not administered? Even in neoclassical theory,
> monopolists can't set any price they want. And same goes for
> "perfect competition," in which equilibrium price is mostly "hovered
> around" rather than specifiable. And even if prices are determined
> on the spot and futures markets, aren't those prices affected by
> OPECs stated intentions for production?

But as I understand Bina, OPEC is more at the mercy of spot and future
markets than the other way about.

I'm still grappling with this but, over the past two decades there
haven't been any successful politically-inspired manipulations of the
price of oil, have there?

-- Shane

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