Quote:
Originally Posted by Richard
And...? Iran is a crude oil exporter and refined petroleum importer - just something else to consider. 
Richard |
Thats one more piece of the puzzle. Iran wants a bigger piece of the oil profits pie[1][2], and of course the Saudis don't want to give it up. Iran sells cheap crude to Russia, China[3], and Japan[4], and buys refined product(s) in return, cutting the Saudis out of the loop entirely, all while still making some profit in light of the embargo; over time this will cut into Suadi oil profits. This puts the current administration in very tough position as the Saudis will either increase price, triggering deeper economic woes, or increase pressure for higher demand, which is completely against Obama's radical environmental policies.
IMHO: This might also explain part of his reasoning on the Keystone XL veto, demand for Saudi oil needs to stay constant for him to attempt reelection, by keeping the economy and the radical environmentalists happy for now...
[1]http://www.nasdaq.com/article/iran-fires-warning-at-saudi-arabia-over-oil-output-20120117-00333
[2]http://www.stratfor.com/weekly/considering-us-iranian-deal
[3]http://blogs.wsj.com/corruption-currents/2012/01/26/chinese-traders-poised-to-profit-from-iran-oil-embargo/
[4]http://news.yahoo.com/saudi-internal-matter-japan-buys-iran-oil-094219088.html
My .02, oh and coffee at Starbucks is still under $5...for now...