It is the media that will report this drop in oil prices day after day. This will influence public opinion. Will add a couple of points to McCains poll numbers. Also look for Osama bin laden to come out with a message like he did in 2004 that is said to help Bush., Bin lauden needs this conflict to continue.
The disgust is that we are doing this for Asia and Europe, they get a large majority of the Saudi oil...The US gets less then 10% from the Saudis. Why are we so helpful to others. Maybe because they expect that from us, The world expects us to defend the oil flow, protecting the international shipping lanes , enforcing internatioal agreements, Why shouldn't the UN do this. Are we the only men in this world?
Oil is an international market controlled by a cartel. If there was disruption in mid-east oil, the price of the oil we get from Canada and Venezuela would go up because Asia and Europe would want that oil too. You can't pull the plug in the swimming pool and expect only the other guy's corner to be affected. But it IS true that the rest of the world is perfectly content to let the US be the security police in this. When you think of the price/barrel - add the cost in military power that goes into securing those flows. The hidden costs would probably be a more realistic estimate of what the price is.
I think the Saudi's are at capacity now and just can't get anymore to market. If you could make Billions more just getting some more product to market, wouldn't you move heaven and earth to do it?
If that's true, why would Bush even bother to ask them? Don't his energy guys know if the Saudis can pump more? Or do they know they can't and don't tell him before he talks to them?
Wait, now the price of oil is rocketing the Republicans will get voted out because of their foreign policy, new efforts are being made to effectively harness alternative energy sources, people are driving and flying less creating less pollution and most Democrats are complaining? Did I miss something? I think that OPEC will be at full production right now. Prices will drop like a stone if one of the World's major consumers goes into a long recession. Bye bye Indian economy!
I think you're missing the point. Without us, the Saudi monarchy would be overthrown in about 10 minutes. It's not a question of "feelings of superiority", it's a matter of cooperation. Of course, Bush's problem was in listening to the State Department, which probably advised him to go hat in hand and beg the Saudis, which is the typical State approach. The Saudi rulers need us a lot more than we need them. Somehow all parties have lost sight of that fact.
When I saw the headline I thought it was a joke. But then I realized we're dealing with Bush and his incompetent voter base. Now Bush can easily say he did his part and tried his "best" to do something about gas prices. only a fool would think the state department didn't know the answer to the request. Also, the Saudis don't have any excess capacity to ship to US refiners. If Bush really wanted to lower gas prices, all he needs to do is pick up the phone and call the exchanges. Increased margin requirements would result in a sell off the next day. Margin call on all the second tier hedge funds.