the specualtive bubble can be broken too.
release some physical oil from the SPR to refiners at $50/bbl. sign a contract with the new iraqi government to replace that oil at $45/bbl, the $5 spread being a form of war repayment.
when the stops underneath all the arbitrage positions get taken out, we'll wring $10-15 out of the price of a barrel in no time.
Sounds good to me. It would also be a gesture of faith that the Iraqi government can get a handle on the country.