Those who suggest that the political machinations of the Bush administration have had more to with falling oil prices than economic and geopolitical considerations have focused on this summer's rejigging of the Goldman Sachs commodity index than on the Saudis' dithering over an OPEC production cutback - particularly the timing of such a move - even though the latter is where US influence on the oil market has historically been most evident. The OPEC cuts are slated to begin at the end of October so that the impact of any price bounce will be felt after the election, not before. It will be interesting to see whether GS follows suit by restoring the weighting of gasoline futures in its commodity index, but even so it wouldn't follow that its motives have been driven more by politics rather than speculation on the price outlook.)
OPEC to Cut Global Output By One Million Barrels a Day
Associated Press October 11, 2006 7:10 a.m.
ABUJA, Nigeria -- OPEC will cut global production by one million barrels a day to boost prices, Nigerian oil minister and OPEC president Edmund Daukoru said Wednesday.
"The cut itself is agreed," Mr. Daukoru told rep......
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Raise the supply; cut off the supply. There's plenty of oil. It's a question of regulating production to suit price and profit within continuing pacific political-economies. Iraqi oil on the world market would just have to be met with cutbacks in output from other capitalist/feudalist States. Capitalist America controls Iraqi supply.
Regards,
Mike B)
Read "Penguins in Bondage": http://happystiletto.blogspot.com/
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