Saudis waging oil-price war on Iran?

[2Sheds_Jackson]

Oil traders and others believe that the Saudi decision to let the price of oil tumble has more to do with Iran than economics.

Their belief has been reinforced in recent days as the Saudi oil minister has steadfastly refused calls for a special meeting of OPEC and announced that the nation is going to increase its production, which will send the price down even farther.

...

Saudi Oil Minister Ibrahim al-Naimi even said during a recent trip to India that oil prices are headed in the "right direction."
Not for the Iranians.

Moreover, the traders believe the Saudis are not doing this alone, that the other Sunni-dominated oil producing countries and the U.S. are working together, believing it will hurt majority-Shiite Iran economically and create a domestic crisis for Iranian President Mahmoud Ahmadinejad, whose popularity at home is on the wane. The traders also believe (with good reason) that the U.S. is trying to tighten the screws on Iran financially at the same time the Saudis are reducing the Islamic Republic’s oil revenues.

...

One trader is convinced that the U.S. and Saudis sealed a secretive deal on Iran when Vice President **** Cheney met with King Abdullah in what appeared to be a hastily arranged summit in Riyadh in late November 2006. There have been lower-profile meetings as well that could have dealt with the arrangement.


http://www.msnbc.msn.com/id/16772560/

Very interesting article.

[Danik]

Interesting article indeed.

By far the best strategy to date. This is worse than any sanctions the UN can impose. The US consumers are delighted( $1.99/gallon in NJ), Iran gets shafted, The Saudi royalty takes a short break in building their yachts all while eliminating their biggest enemy by doing what they do best, selling oil.

2Sheds, Would I be crazy to think...

That the Saudis planned this out well in advance, and offset any losses they would incur in oil revenue, by buying up oil futures betting the price would go down?

[ex Strathcona]

good news for those of us who miss their bigass 4x4s, bad news for Alberta though :(

[jedisponge]

Wow that's a very interesting article.

Great find.

[BadTolz]

Interesting article indeed.

By far the best strategy to date. This is worse than any sanctions the UN can impose. The US consumers are delighted( $1.99/gallon in NJ), Iran gets shafted, The Saudi royalty takes a short break in building their yachts all while eliminating their biggest enemy by doing what they do best, selling oil.

2Sheds, Would I be crazy to think...

That the Saudis planned this out well in advance, and offset any losses they would incur in oil revenue, by buying up oil futures betting the price would go down?
Funny how when the price of oil goes up you see it at the pump the next day but just the opposite when oil prices goes down. Still $2.25 -$2.55 here in Pennsylvania

[Miles.]

Hell yeah. Cheney and the Saudis to the rescue!!!

[Miles.]

Funny how when the price of oil goes up you see it at the pump the next day but just the opposite when oil prices goes down. Still $2.25 -$2.55 here in Pennsylvania

It is going down here in Texas. I payed $1.97/gallon today. Hasn't been that cheap since about 1 year ago.

[sinophile]

Alright:

Oil price pressure.
Iraq as a financial drain.
Hezbollah as a financial drain.
Massive increase in US military in the Persian Gulf.
Years of covert political pressure.

How much longer before we can expect regime change in Iran? If this was the plan before we invaded Iraq then my hat's off to Bush's national security team... as I've said in previous posts the strategy is straight out of cold war doctrine of inflicting massive unsustainable financial pressure on your enemy.

[ex Strathcona]

Alright:

Oil price pressure.
Iraq as a financial drain.
Hezbollah as a financial drain.
Massive increase in US military in the Persian Gulf.
Years of covert political pressure.

How much longer before we can expect regime change in Iran? If this was the plan before we invaded Iraq then my hat's off to Bush's national security team... as I've said in previous posts the strategy is straight out of cold war doctrine of inflicting massive unsustainable financial pressure on your enemy.

plausible however ingredients are still missing such as an internal crisis and a military that is seen as either neutral or sympathetic to change.
but hey, as they say the night is still young.

[Miles.]

plausible however ingredients are still missing such as an internal crisis and a military that is seen as either neutral or sympathetic to change.
but hey, as they say the night is still young.

Do they have professional officers or Islamic sycophants? Does anybody know? I'm ignorant on the subject.

[ex Strathcona]

Do they have professional officers or Islamic sycophants? Does anybody know? I'm ignorant on the subject.

at this point i am betting on professional Islamic sycophants

[SBL]

plausible however ingredients are still missing such as an internal crisis and a military that is seen as either neutral or sympathetic to change.
but hey, as they say the night is still young.

But isn't the prospect of a domestic crisis what the article is talking about?
Economic hardship rarely reflects well on the ruling government, and there seems to be a kind of cultural divide between the mullahs and a more secular middle-class. I'm no expert, but that's the impression I get of Iran.

[Ordie]

Have we forgotten 9/11?

19 Saudis massacred 2,973 innocent people. They did so with support of the Saudi public and oil money.

I don't trust the Saudis nor the Persians.

They are using thier ancient religious rivalry (Sunni vs. Shia) get in the way of business. That's a distrubing trend.

Moreover, Iraq invasion of Kuwait was triggered by a dispute over the production of oil. Iraq wanted a reduction to increase the price of oil to pay its debts, Kuwait did not.

Similar scenario between the Persians and the Arabs.

The sooner we get out of the oil dependency the better.

[Danik]

The sooner we get out of the oil dependency the better.

I concurwoot Until then, lets use their beef with each other to our benefit.

[Laworkerbee]

Moreover, Iraq invasion of Kuwait was triggered by a dispute over the production of oil. Iraq wanted a reduction to increase the price of oil to pay its debts, Kuwait did not.

Lets not forget that those dastardly Kuwaiti's were side drilling into Iraqi oil fields and gave Saddam the finger when Tariq Aziz confronted them about it during the Arab summit that was supposed to ease tensions in the region 1990, Kuwait was also accused of over production of oil by the Iraqi's.

[Violet Fashion by Mindy]

They tried this tactic on Iraq in 1990. Look what happened.

:roll:

[Snoshi]

Good and intresting article.

[annihilation]

Interesting idea I hope it works out.

[California Joe]

Nice of the cocksuckers after I pre bought heating oil at 2.69 per gallon.

[annihilation]

Nice of the cocksuckers after I pre bought heating oil at 2.69 per gallon.

Damn you got it worse than me, mine was 2.49, (they reduced it a dime from the original price).

[California Joe]

At the time the trend was heading above 3.00 a gallon and the company I picked had the lowest price. Pricks.

[2Sheds_Jackson]

At the time the trend was heading above 3.00 a gallon and the company I picked had the lowest price. Pricks.

I can just see them down at the Tri-Lateral commission, there they were in the underground lair, all seated around the large table - Senators, Saudi Sheiks, the leaders of the US, Russia, China, Kissinger, CEOs of Citigroup, SAIC, the Queen, Mr. Burns, all watching your call on the 50' bigscreen - the instant you made your order. "Now! Boost production now!" >maniacal laughter as cigars are passed around<

[California Joe]

rofl That's exactly what happened. Don't forget the Masons too.

[Mastermind]

Well, I am now imagining the scenario...Iran switiches targeting of their new but crude nukes to the Saudi Palace....OMG!

Hey, you guys are paying more for home heating fuel than we are paying for gasoline at the pump WITH OUT-FRIGG'N-RAGEOUS FED AND STATE ROAD TAXES ON TOP!

WTF is up with that? Sounds like you guys are buying from L. Luciano Heating Oil Co. I think the BTU/cost equivalent of white oak stove pellets is about equal to your price.
MM

[tyovan]

Funny how when the price of oil goes up you see it at the pump the next day but just the opposite when oil prices goes down. Still $2.25 -$2.55 here in Pennsylvania

Where in the state are you mate? I think I paid about $2.09 today - I'm 20 miles south of Harrisburg.

[Laworkerbee]

$2.55-2.60 here in Los Angeles and it seems to be going down.

[SBL]

Buck 99 in Northern Va.

[annihilation]

Depending on where in CT you went:
New Haven, I saw it anywhere from 2.19 to 2.29

[ViktorNavorski]

Another proof of the old adage, "Business is WAR!"

[Miles.]

Another proof of the old adage, "Business is WAR!"

Who would know better that **** Cheney?

I love the man right now.

[Kant]

Who would know better that **** Cheney?

I love the man right now.

Did he threaten to shoot you in the face again?

[Miles.]

Did he threaten to shoot you in the face again?

You want me to tell you the God's honest truth?

I love **** Cheney. I really do. I would take that guy as a football coach, a boss, a CO, anything...

[chaz]

Very interesting story. Especially this part:
Rafsanjani is known to believe that Iran should not continue to anger the U.S. and should align itself with the Americans in a fight against the Sunnis, an opportunity that is slipping away as Iran angers the U.S. in Iraq and on the nuclear front. And this week, reformist Ayatollah Hossein Ali Montazeri joined in the criticism.

For the U.S. and Saudis, this can only be seen as good news.

[Laworkerbee]

You want me to tell you the God's honest truth?

I love **** Cheney. I really do. I would take that guy as a football coach, a boss, a CO, anything...

I'm going to very quietly agree with you as I do not want to attract attention :)

[Miles.]

I'm going to very quietly agree with you as I do not want to attract attention :)

That's subtle enough.

[Laworkerbee]

rofl rofl rofl

[Jobu]

I think one of the major problems with a hasty coalition withdrawal from Iraq is that our boys would be replaced by Saudi support for the Sunni groups and more Iranian support for the Shia.

Not only would the civil war make today's car bombings look like child's play, but the price of oil would skyrocket since that would not be a conflict which would end in a timely fashion.

[Miles.]

My gas is down to $1.96.

Hell yeah.