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Politics : Foreign Affairs Discussion Group -- Ignore unavailable to you. Want to Upgrade?

To: LindyBill who wrote (58480)	11/23/2002 8:13:05 AM
From: kumar	Read Replies (2) \| Respond to of 281500

from the time OPEC members have been over-producing, including the Saudi's, they lost exclusive control on price fixing. They also have a lot invested in Wall St. If they pulled all of that out in 1 week, the street would crash (again).

To: LindyBill who wrote (58480)	11/23/2002 8:19:36 AM
From: John Carragher	Read Replies (1) \| Respond to of 281500

Saudis have always been trying to maintain 21 or 22 a barrel... They realize higher cost of oil brings down demand and makes alternative fuels more competitive.. They make sufficient money at $21 to maintain all the support groups in their country, (hospitals, schools, services).

To: LindyBill who wrote (58480)	11/25/2002 4:22:26 PM
From: Brian Sullivan	Read Replies (1) \| Respond to of 281500

Bill, The Saudi's cost of production is the lowest in the world. They can always sell their oil at a profit. It is true that they have large debts and their prince's like the high lifestyle, so they would experience some pains if oil were to drop below 20 dollars a barrel. But I don't see how having Iraqi exporting oil at 21 dollars a barrel really hurts the Saudis. It hurts the higher cost producers like the offshore oil in the gulf of Mexico or the North Sea wells. Besides the Iraqi wells will probably need 9 months or more worth of work to bring them back online at full capacity.