Blogs > HNN > GOOD NEWS - SAUDIS LOSE CONTROL OVER THE OIL MARKET

Oct 9, 2004 7:32 pm


GOOD NEWS - SAUDIS LOSE CONTROL OVER THE OIL MARKET



No, I do not enjoy paying more for oil than you do. BUT I am delighted with the implication of the Saudi loss of its ability to manipulate the price of oil. Why? Because that was the real source of its destructive power in the Middle East (since the 1968 Khartoum conference, the Saudi have been paying those who refused to make peace with Israel) and its influence in the US (based in part on paying off former American official connected with ME policy).

The Saudis are pumping and pumping and nothing. Already Senator Kerry is not afraid to run a 30 second campaign ad specifically directed at the Saudi royal family.

No one can hear the bell toll more clearly than that royal family. During the late nineties, I attended a lunch meeting with Hani Yamani where he argued that the Saudis should offer to sign a contract promising the US to supply it with all the oil it needs for fifty years at $10 a barrel. Why? In order to prevent the emergence of an economically viable alternative energy supply. Does anyone believe that with $50+ a barrel an alternative energy source is far away? Perhaps, that is the reason Putin signed Kyoto and the Bush administration agreed that their is danger of global warming. For it seems clear that the end of the era of fossil fuel is with us. The Chinese demand is not going to decline. In fact, the Indian one is bound to increase.

As I have always believed, G-d works in mysterious ways.




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