Saudi Arabia’s oil war against Iran and Russia

The New York Post ^ | Sunday, December 14, 2014 | Ralph Peters

[thackney]

Even worse are the one that think since Saudi won’t raise oil prices by cutting production, the feds should force the US prices higher than the rest of the worlds with more taxes.

[Democrat_media]

by restricting production in the past, Saudi Arabia state controlled cartels caused artificially high prices. now the artificially high oil price bubble is bursting .

this severe price drop is all caused by Saudi Arabia and OPEC STATE controlled cartels

in a free market price would be stable as no such artificially high prices would have existed for so long.

[thackney]

I agree in the past, many years past, OPEC has raised the price of the oil in the market by restricting production.

You could even make the argument, that by not increasing production over the last few years, they have helped the US build a substantial increase in our oil production. Our real growth would not have happened in the low prices of early 2009 had continued.

in a free market price would be stable

Actually, commodities markets show pretty clearly stable prices are not normal outside of a cartel willing to manipulate price. I'm not arguing OPEC is a good thing. But utopia doesn't exist in the oil industry with or without OPEC.

[Democrat_media]

i disagree. there are no truly free markets. it is state manipulation as in state cartels that causes artificial prices. in truly free market price meets at the point that supply and demand intersect. if the price goes higher then supply increases( oil production increases) to meet demand and price remains the same etc.

[babygene]

I posted this earlier on another thread...

This is actually pretty troubling. Anybody remember the lead up to Pearl Harbor and the second world war?

For those of you that don’t, it was all about the money. Their economy was being squeezed. Russia could be very dangerous in a situation like this.

The bright spot is that it is OPEC (namely the Saudi’s) that are screwing with the price of oil to damage our production and that is hurting Russia more than so far it is hurting us.

Poking one’s finger in Russia’s eye may not be wise. Russia could very easily change the equation in their favor by sponsoring an attack by Iran on the Saudi’s.

Just saying... These are dangerous times.

[exit82]

Agree—what are we prepared to do if Russia, Iran and Syria decide to attack Saudi Arabia?

[thackney]

So you see the gold commodities market as being stable since there is no cartel controlling 40% of the market?

OPEC is part of the market. Even though we don’t like it, it is part of the supply curve, just like our EPA, regulations and taxes all effect the curves.

[neocon1984]

It’s the Mideast. Alliances are complicated and always shifting.

[Democrat_media]

a truly free market works better than a partially free market with government interference always. you are comparing apples and oranges. my point is that if the STATE OPEC oil cartel including Saudia Arabia , if the cartel would not have artificially raised prices for so many years then we wouldn't have this price bubble bursting now. price in the oil market would not have risen to this level for so many years enabling the massive investing in oil drilling if it were not for the state oil cartel. price would be more stable in a free market as the price is set where demand and supply intersect. the fact is that government/state interference as in this arabia state cartel it hides true supply from the market . free market works .government interference creates false bubbles

[thackney]

And if pigs had wings, they could fly.

But I have to work in the real world.

Cheers!

[SunkenCiv]

The complete disintegration of the Arab Middle East is the goal of Iran, and Russia’s supported it because they want to keep competitors out of the EU market.

[nascarnation]

Has Venezuela cut off the oil to Joe Kennedy yet?

[Democrat_media]

ok you are right , the free market doesn't work ,we need state cartels and government interference for it to work/sarcasm

no actually the state cartel cause this artificial fake price bubble that is now bursting by hiding real supply from the market.

[thackney]

I’m not claiming we needed.

But wishing won’t make it go away.

[fatez]

No doubt you have seen the Obama is getting ready to poke Putin some more. He is getting ready to announce more sanctions is my understanding.

[Chaguito]

The whole scenario smells like an agreement between Obama and the Saudis. If so, he’s not so dumb. He achieves:
1) an indirect attack against the frackers, many of whom will go out of business;
2) damaging Russia;
3) damaging Iran;
4) lowering prices at the pump, good for his image;
5) making alternatives look better, even though they largely defy the second law of thermodynamics.

[fatez]

:)

[fatez]

the Obama = that Obama

[thackney]

You believe that Obama convinced the Saudi’s to not cut production and lower their revenues, for his image?

And how does lower gasoline prices make alternatives look better?

[babygene]

“Agree—what are we prepared to do if Russia, Iran and Syria decide to attack Saudi Arabia?”

Obama will do nothing because he is chicken $hit.

And that’s probably a good thing because we don’t need a nuclear war with Russia. It could be that the Israelis will though.