Clinton leads diplomatic dance to change Opec's tune
Financial Times, quotes from yesterday´s editorial
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The decision to raise the issue in Nigeria indicates how sensitive oil prices have become in the US presidential election season. Nigeria, the fifth largest source of US oil imports, has been unable to produce even up to its current Opec quota. Further, the country has little influence on Opec decisions. But with rising petrol prices aggravating US drivers, "the administration wants to appear active in trying to bring down the price of oil", says James Burkhard, an oil market analyst with Cambridge Energy Associates.
Antonio M. Szabo, the president of Stone Bond, a Houston energy consulting firm, said: "This is a charade. But the Clinton administration says we have to do the charade to get the result."
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The US is believed to have kept the pressure up, with reports of a recent letter from Mr Clinton to Crown Prince Abdullah. But analysts said Riyadh has no interest in selling the additional oil at a big discount, partly out of fear of depressing the market and losing control over any slide.
Politically, there is the danger of appearing to be bending too easily to US pressure, particularly among countries such as Iraq, Libya and Iran, whose relations with the US are strained.
Saudi rulers, too, are sensitive to perceptions that their oil decisions are influenced by the US, especially at a time when Arab opinion is critical of Mr Clinton's policies in the Middle East peace process. The Arab world reacted with dismay when the US blamed the failure of last month's Camp David summit on Yassir Arafat, the Palestinian leader.
"Whatever diplomacy the US believes is necessary between them and our allies they should be very quiet," said Lawrence Goldstein, the president of Pira Energy Group, a New York-based energy consulting firm. "It's not going to be an easy sell." |
