Saudis Pledged Oil Price Cut Before U.S. Vote -Report (No wonder gas is so cheap)

reuters.com ^ | 04/18/04 | reuters

[KQQL]

WASHINGTON (Reuters) - Saudi Arabia's ambassador to the United States, Prince Bandar bin Sultan, promised President Bush the Saudis would cut oil prices before November to ensure the U.S. economy is strong on election day, journalist Bob Woodward said in a television interview on Sunday. In an interview with CBS's "60 Minutes" about his new book "Plan of Attack" on the Bush administration's preparations for the Iraq war, Woodward, a senior editor at the Washington Post, said Prince Bandar pledged the Saudi's would try to fine-tune oil prices to prime the U.S. economy for the election -- a move they understood would favor Bush's re-election.

Questioned about his assertion at a time when oil prices are nearing a 13-year high, Woodward responded:

"They're high. And they could go down very quickly. That's the Saudi pledge. Certainly over the summer or as we get closer to the election they could increase production several million barrels a day and the price would drop significantly."

It was not clear from the interview precisely when Prince Bandar's pledge was allegedly made.

Bush has been under attack from Democrats in recent weeks for failing to halt rising domestic gasoline prices which have hit a record of $1.80 per gallon, according to the U.S. motorists group AAA.

The spike in gasoline prices resulted from a sharp cut in crude oil production this month by members of the Organization of Petroleum Exporting Countries. Oil futures in New York closed on Friday at $37.74 a barrel for U.S. light crude.

Prince Bandar has been the Saudi envoy to the United States for 20 years and is part of the Saudi royal family, which has had a close relationship with the Bush family for years.

Earlier this month Bandar reassured Bush that the kingdom would not allow oil shortages to hurt world economic growth after Saudi Arabia led a push by OPEC to cut output by 1 million barrels a day from April.

"Saudi Arabia's policy is consistent. Number one: we will not allow any shortages in the market," Bandar told reporters on April 1 after delivering his message to Bush from Saudi Arabia's de facto ruler Crown Prince Abdullah.

Rising oil prices have threatened to revive tensions between the United States and Saudi Arabia, despite decades of close ties which were severely strained by the fact that 15 of the 19 hijackers in the Sept. 11, 2001 attacks were Saudis.

[KQQL]

#@

[xrp]

(Caveman sounding voice) -- This man "Bush" is powerful man! Him manipulate to his will! Haw haw haw haw!

[Bobby777]

given that 15 of the 19 hijackers was from Saudi Arabia, we:

A) Should have gone in there first or

B) Let Saddam have them first after we left ...

sorry, I'm just tired of their arm-twisting ... and their telethons for Pali attackers' families ... etc. etc. etc.

[TheEaglehasLanded]

Hmmm, Woodward definitely wrong on this one, Saudi's just helped OPEC cut oil production and it's April. If he increases production in the fall it's too late by then, prices wouldn't drop till after the election.

[Mad_Tom_Rackham]

Doesn't the Left EVER tire of being wrong? They have to be the stupidist people on earth.

[Rightone]

Woodward is an @hole. Sure this is really, really true.

[Southack]

Woodward is killing whatever is left of his credibility...

[Mad_Tom_Rackham]

Doesn't the Left EVER tire of being wrong? Their penchant for relentless stupidity is astounding.

Sorry for previous unedited post. My bad. :O)

[CatOwner]

Nice job by Woodward! If the Saudis somehow ramp up production and cut oil prices, then everyone will say that Bush rigged the election with the Saudis' help (thanks to Woodward's book). If it doesn't happen and the surging oil prices dampen the economy's outlook later this year, then the RATs benefit with the pressing ably reporting it.

[CatOwner]

pressing = press

[Peach]

Woodward took a hard turn left somewhere and lost his mind in the process. At least he'll recognize a lot of his friends in the insane asylum.

[Betaille]

"Saudi's just helped OPEC cut oil production and it's April. If he increases production in the fall it's too late by then, prices wouldn't drop till after the election."

Exactly. Woodward clearly doesn't understand how the Oil Market works. In addition, even if this was true, why would Bush let a liberal hack like Woodward in on the dirty little secret?

[bayourod]

Woodward is lying. Bush hasn't confided all these things to him.

His book is just another desperate attempt by liberals to influence the election.

Liberal lying journalists have their backs up against the wall already because the big news makers now are all Republicans who prefer to give interviews to legitimate journalists.

Bush's reelection could mean the death of liberal lying journalists.

[FreedomCalls]

The spike in gasoline prices resulted from a sharp cut in crude oil production this month by members of the Organization of Petroleum Exporting Countries.

That's BS. The price spike has come from the lack of refining capacity in the U.S. during the transition from refining home heating fuel in the winter to refining "boutique" gasoline formulations to meet individual states and even individual cities' legal requirements under the "Clean Air" Act. Refineries can't just make gasoline anymore, they have to make a specific oxygenated formulation tailored to about 25 different requirements. When they are refining oxygenated gasoline for sale in California that refinery can't meet a shortage of gasoline in Michigan until the production run for the California gasoline is finished. It has NOTHING to do with OPEC. It has everything to do with the shortage of refineries in the United States. NIMBYs are to blame.

[Mad_Tom_Rackham]

It must be difficult to realize that a lucky break in one's youth was the zenith of one's life. He must hate himself far more than the average liberal.

[risk]

I blame the econuts for refusing to dril in ANWR and off the coast of Kahliforrniya-stan. When the watermellons say no blood for oil, they really mean no natural habitats disturbed for oil.

[deport]

It was not clear from the interview precisely when Prince Bandar's pledge was allegedly made.

---

Never is a lot of detail is there? Nothing has to be defined or clear.... just a good ol' assertion will do as fact.....

Personally I doubt that Woody got that much inside info from the President or those close to him.

[KQQL]

The book also reports that in the summer of 2002, $700 million was diverted from a congressional appropriation for the war in Afghanistan to develop a war plan for Iraq.

---

I still wanna know, what were W and Rove thinking..giving WOODY Interviews.

I guess ROVE learned nothing from watergate

[Southack]

"It must be difficult to realize that a lucky break in one's youth was the zenith of one's life. He must hate himself far more than the average liberal."

Oh, is that why he hates himself (rather than say, his "lifelong bachelorhood")?

About the only intriguing thing Woodward has going for him is that he predicted Donald Rumsfeld or Richard Cheney would be two of Bob Dole's top VP picks in 1996.