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Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: IQBAL LATIF who wrote (47069)	10/17/2004 7:37:09 AM
From: IQBAL LATIF	Read Replies (1) \| Respond to of 50167

Politics of oil prices. On surface is appears that Russia that produces equal barrels to Saudi should one day become the swing producer but if one scratch the surface a little one would realize that on reserves Saudi and their closest allies in OPEC belong to two different breeds. The two groups as a result should have conflicting oil pricing policy. Saudis and their allies represent nearly 25 percent of the global reserves of more than 800 billion barrels. The nations with miniscule reserves within OPEC like Venezuelans, Indonesians need higher price now they may be running out of oil in next 20 years. However, Saudis, Iranians, Iraqis and Kuwaitis with much larger reserve base extending beyond 5 decades need balance prices that may continue the ‘party of oil’ a bit longer until their economies dependence on single commodity is shifted. This fault line within OPEC where OPEC is divided into rich reserve nations and poor reserve nations would lead to rethink within OPEC as Saudis and their allies support a more balanced regime of oil pricing.