[lbo-talk] Gasoline price manipulation?

[Wojtek Sokolowski]

What's happening with Iraqi oil?  Is it still off the market?  Of course, it
is..well mostly, I suspect.  I don't know for sure though.  That's one
reason why I read LBO. ;P  I mean, second largest proven oil patch in the
world off the market.  Could it be in Big Oil's interest to keep it so?
Yeah, I know: the insurgency.  Seems, if that pool came online, the world
market price of oil would be back to $25 a barrel again, like it was before
the 2003 invasion.  Of course, this wouldn't be good for Big Oil's profits.
Or is this an illusion?

 

Regards,

Mike B)

 

[WS:] One possible factor, which AFAIK nobody on this list mentioned, is the
role of oil reserves, or "oil Keynesianism" if you will.  Consider the
following hypothetical situation: government slowly uses up oil reserves to
combat price hikes due to supply disruptions.  This in a short run slows the
price increase, but eventually the reserves have to be rebuilt, which
increases short term demand and thus price.  Therefore, this situation is
likely to result in a short- to - medium time price increase and then a
quick drop after the disruption has been stabilized and reserved rebuilt.  

 

Can anyone more knowledgeable on this subject offer some insights into this
possibility?

 

Wojtek

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