Wednesday, January 17, 2007

The Saudis Finally Got the Damned Memo

Bush must feel relieved.

Remember when the Democrat talking points told us that in the fall, just before the 2004 elections, Bush was going to whisper in Saudi ears to increase oil production and the price of a barrel of oil would drop astronomically in order to assure "his popularity" before the election?

Well it finally happened, only two and a third years to late. So I guess, in the manner of truthiness, we can say the Dems were right, after all. It's just that their forecast came a bit too early.
Prices fell in early trading after Saudi Arabia's Oil Minister, Ali al-Naimi, said his country has 3 million daily barrels of spare capacity and will push ahead with projects to expand output. Oil futures plunged yesterday after al-Naimi said he saw no need for an emergency OPEC meeting to consider further cuts in output.

``The Saudis are saying that they don't want to be the swing producer,'' said Bill O'Grady, director of fundamental futures research at A.G. Edwards & Sons Inc. in St. Louis. ``The Saudis have made substantial cuts, unlike a lot of the other OPEC members. Oil in a $40 to $50 range suits the Saudis much better than oil at $70.''
And the only reason that it suits the Saudi's better, is because it suits the Iranians much, much worse. No wonder that Ahmadinejad was huddling so closely with that kuffir Chavez last week. But it doesn't seem to have done any good, except to reinforce the Saudis in their decision to keep oil production constant.

This Saudi-Iranian hostility could keep gas prices low for some time. Which might work out to be another "mistake" caused by the blundering Bush policy in the middle east.

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