The authors blew this premise completely by not stating any facts to back up this specious claim, then followed it later with their own ammunition to undermine totally the "price fixing fantasy".
But in another scenario, oil prices could be pushed sharply downward, creating instability elsewhere, especially in Saudi Arabia. Which the U.S. will do almost anything to prevent—maybe.
Iraq could produce as much as 12 million bbl. daily, easily making it the world's No. 1 producer. If Iraq goes that route, the political fallout would be widespread. It would mean less money for the Russians, who are just beginning to get their economic house in order, thanks to oil exports. It would mean less money for an unstable Iran, which is suspected of developing nuclear weapons. It would mean less money for Texas oilmen and energy companies everywhere. It would mean less money for other emerging oil producers, which are betting that their more expensive-to-produce oil will be desperately needed. And most significantly, less money for Saudi Arabia.
I read this earlier on Drudge and was struck by the "price fixing fallacy". Other than the editorializing in an otherwise factual article, it makes for an informative and accurate portrayal of what will come.
The authors fail to note that crude prices have been in the low teens in the recent past, due to the only factor that controls prices....the MARKET.