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Politics : Foreign Affairs Discussion Group
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To: Ichy Smith who wrote (198806)8/23/2006 2:51:42 PM
From: TimF  Read Replies (1) of 281500
 
But your supply would be more or less secure.

Not really. Or at least not nearly as much as you might think.

If the Iranians cut off supply than the Germans, French, Indians, Chinese, Japanese, Koreans etc. will try to buy the oil we are buying from Mexico. If the Mexicans sell it to the French than they can't sell it to us. OTOH if we are buying from the Iranians or Saudis, and the Japanese are buying from Mexico and the Iranians cut off the supply, we can try to outbid the Japanese for the Mexican oil.

Its a total supply vs. total demand situation.
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