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To: Dog Gone
Iraq wanted to start an embargo with 2 other of the OPEC countries
54 posted on 04/05/2002 9:33:10 AM PST by Kaslin
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To: Kaslin
Iraq wanted to start an embargo with 2 other of the OPEC countries

An embargo only works if a country completely stops producing, because it loses control over the destination of the crude once the ship has left port. It would take ALL of the OPEC countries to shut in production to cause a shortage.

That would hurt us, but it would hurt all oil-importing countries. But it would hurt OPEC far worse. Most of them have crappy little economies that are completely dependent on oil revenue, and an embargo would cause them to instantly lose access to the credit markets.

Our prices would go up, but their lights would go off. It ain't gonna happen.

59 posted on 04/05/2002 9:43:58 AM PST by Dog Gone
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