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

To: Rascal who wrote (82631)	3/16/2003 10:45:15 AM
From: quehubo	Read Replies (1) \| Respond to of 281500

The strategy so far by the Bush Administration has been to ensure that prices are high enough in the USA to attract as much product as possible. Oil will flow to the highest bidder. Producer nations will let it flow when they see high prices. The low stock levels in the USA are a result of the VZ strike and high demand brought on by the weather. OPEC is saying they can do no more, they are maxed out. The government is saying the SPR is to be used only when we have real shortages, not to control prices. We are very close to having shortages, but I expect some of OEPC's increased production to start arriving soon. When Iraqi and Kuwaiti production is interrupted, nations will have to release their emergency reserves to quell prices. But if Iraq manages to seriously destroy some production within Iraq, Kuwait or SA, the emergency reserves may be released slower as the shortage could be longer. Remember any reserves released will need to be restored. The present prices reflect awareness that many nations do have emergency reserves.