Falling Gas Prices and Iran

[Master_Mels_Bates]

Did you know there could be a link between the two? Seems funny at first but read on and it all makes sense. 


Saudia Arabia, Oil Prices, and Iran


The recent fall of oil prices may mean more than just lower prices at the gas pump. Oil traders believe that Saudi Arabia may be helping the U.S. destabilize Iran's economy by driving the price of oil down.
Iran is OPEC's second largest oil producer, but doesn't have the technology required to refine oil, and has to import 40% of its gasoline, making it the second largest gas importer behind the United States. Iranian oil is also more difficult to extract than Saudi oil; it costs Iran $15-18 per barrel compared to $2-3 for Saudi Arabia to get out of the ground and to market. Adding to Iran's difficulties is the lack of up-to-date exploration and drilling equipment which will make it even more expensive, if not impossible, to extract oil in the long run if prices continue to fall.

Iran's current economy is also having difficulty, with inflation officially running at 17% and unemployment at 11%, although U.S. intelligence believes the figures could be much higher. In addition to economic troubles, Iran's current president, Ahmadinejad faces increasing unpopularity at home after being unable to fulfill campaign promises that he would end corruption and better distribute the nation’s oil wealth.

While the Saudis firmly deny that they are attempting to squeeze Iran economically, the decision to lower the price of oil has a number of benefits to them, including depriving Iran of hard currency, creating unrest in a rival nation, and possibly averting the need for military action to arrest Iranian nuclear ambitions.

http://www.omninerd.com/2007/01/26/news/1116




I was watching a show on CNBC and some  are predicting this will eventually bring oil down to $20 a barrel. That would bring gas down to under a dollar a gallon!!!!!!



 

[Master_Mels_Bates]

Also it looks  like Dick Cheney may have help put the squeeze on Iran's nuts.


After Dicks visit to Saudi Arabia last november for unknown talks with King Abdullah,  oil prices have dropped. Many think the talks were about a mutual interrest, Iran. The Saudis’  would like to restrain Iran’s ambitions in the region. The U.S. would like to not start another war, at least not right now.



The New York Times also has so interresting things to report http://www.nytimes.com/2007/01/28/business/28oil.html?hp&ex=1169960400&en=0c787b792552f5aa&ei=5094&partner=homepage

[Pooter]

yah, Venezuela's having some problems with oil too.

good.

kill two birds with one stone.

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[Master_Mels_Bates]

yah, Venezuela's having some problems with oil too.

good.

kill two birds with one stone.

*

Hey Pooters, hows it feel to have "fresh meat"? I always  Fabreezed my meat but its no longer necessary, I have freesh meat too!

[vernarial]

Personally I don't think it's very cool of the USA(with ths Saudis help) to destabilize the economy in another nation or to use iol to play politics in another nations affairs. If that's what they are trying to do. If they are trying to do it to ease the burden on Americans than I think it would be alright. You never know why the politicians do anything even when they give a reason.