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Politics : View from the Center and Left -- Ignore unavailable to you. Want to Upgrade?

To: JohnM who wrote (31446)	11/10/2006 10:49:17 PM
From: Dale Baker	Read Replies (1) \| Respond to of 541787

The spare production available in the world is less than 2% of production, so pulling all Iraqi oil would have a dramatic impact at the margins, where the spot price is set. The traders would also price in a higher political risk factor. So yanking that much oil would cause a decent price spike. It would be less than the consequences of a regional blowup, but it is an important factor. Pulling back US troops to the oil fields sounds like a desirable strategy.