Demand for Saudi crude remained high as they post price and let quantity adjust.

So it looks like they are trying to keep prices in check even with demand getting reasonably close to their capacity limits.

And it’s not illegal for them to set the price of oil to best support their candidate of choice.

9 Responses

  1. You think the Saudis are rooting for Obama? I would think they’d be pretty neutral.

    Their main issue must be containment of Iran, and Obama’s done well with the sanctions. But Mitt supports the sanctions too and bombs to boot. I could understand them hating Republicans for being anti-Muslim and anti-Palestinian, but they never seemed to care about that stuff under Bush.

  2. I’ve always thought the Saudi’s could actually control the election entirely by themselves. Low oil prices would favor the incumbent while a sudden increase would favor the challenger. I feel like the prices went up about a month ago, but not quite high enough to make an impact. Feels like they squeezed the President to let him know who’s in charge. They could easily make it go either way. Of course, the more Mitten’s speaks, the more harm he does himself.

  3. “And it’s not illegal for them to set the price of oil to best support their candidate of choice.”

    Another example of the GOLDEN RULE

    “The man with the gold rules”

  4. Absolutely convinced the Saudis are trying to squeeze the Iranians to collapse by dropping the price of crude… and looking at the Iranian currency collapse they just might be successful.

  5. I don’t think gas prices are as much of a hot button item as they were. People have pretty much decided that the oil companies, like the credit card companies are out to screw them and are turning to alternatives. While a slight increase in consumer credit use has been noted, it’s my guess it was a disappointing summer tourist season. Travel on the interstate was a delight and the decrease in highway fatalities seems to be holding steady.
    Anyway, here are the links for Wray’s and Hudson’s presentations at Columbia — in more manageable bits:

  6. Alternative view which corresponds to MMT

    Iran has no problem selling oil which Warren linked to.
    World’s Largest Oil Trader Skirting Iran Sanctions

    Instead we have a version of this
    http://www.rawstory.com/rs/2011/06/19/missing-iraq-money-may-be-as-much-as-18-billion/

    but in Persian currency provided by U.S. and Israel governments.

    “Nations have used counterfeiting as a means of warfare. The idea is to overflow the enemy’s economy with fake bank notes, so that the real value of the money plummets. Great Britain did this during the American Revolutionary War to reduce the value of the Continental Dollar. ”
    http://en.wikipedia.org/wiki/Counterfeit_money

    Depending how the new money is spent into the economy, you get a Persian spring.

    Iran will overcome currency “conspiracy”, Khamenei ally says
    http://uk.reuters.com/article/2012/10/05/uk-iran-economy-idUKBRE8940E620121005?feedType=RSS&feedName=worldNews

    Iran Currency Crisis Sparks Protest

    TEHRAN — A protest and scuffles with police occurred in central Tehran Wednesday in the first sign of public unrest over Iran’s plunging currency, which this week has lost more than half its value.

    http://www.nasdaq.com/article/iran-currency-crisis-sparks-protest-20121003-00164#.UG73zZG9KSM

  7. Liberals have always bent over backwards to keep America on foreign oil (block development of nuclear, nat gas, wind, etc) so Obama is their boy..

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