Senators Threaten Saudi Arms Deal Over Oil Prices

[unhappycamper]

Senators Threaten Saudi Arms Deal Over Oil Prices
By AGENCE FRANCE-PRESSE
Published: 13 May 16:41 EDT (12:41 GMT)

WASHINGTON - A group of Democratic senators on May 13 threatened to block a multimillion dollar U.S. arms deal with Saudi Arabia unless the kingdom ups oil production and helps cut soaring gasoline prices.

The Senators introduced a resolution of disapproval on the arms sale as President Bush prepared to head for Saudi Arabia, partly on a mission to contain runaway oil prices.

"We are saying to the Saudis that, if you don't help us, why should we be helping you?" said Sen. Chuck Schumer, D-N.Y. "We are saying that we need real relief, and we need it quickly. You need our arms, but we need you to cooperate and not strangle American consumers."

The resolution, expected to be fast-tracked to the Senate floor, would prohibit the mammoth arms sale unless Saudi Arabia agrees to increase oil production by one million barrels per day.

Schumer said such an increase could bring down the price of a gallon of gasoline at the pump by 50 to 75 cents.


Rest of article at: http://www.defensenews.com/story.php?i=3527240&c=MID&s=TOP

[lxlxlxl]

1. Blaming the Saudis is not going to do us any good

It's true that the oil prices are dependent on OPEC's output, but what we are seeing now in the market is a result of Speculation, hedge funds making long and short term bets on oil (food prices could also be included). Goldman and JP are principal players. People really need to open up their eyes to profit taking all over the globe, and not just focus on "saudis", which unfortunately in this political context easily gets tied into Anti-Muslim/Arab/Persian fears.

Wall Street and the Americans who invest there are just as complicit, and frankly, at above $80 gas, we are all going to get screwed.

BTW, I think the BAE scandal is more interesting Saudi news...

[Trajan]

2. Well ... It IS true that if ...

Oil production increased, and prices started a downward movement, the speculators would get hosed, and start dumping out of the market, and deflate the bubble ....

I am always fascinated by those here who refuse to ascribe any blame to oil producers, as if they are NOT heaping treasure upon treasure from this outrageous runup in prices ....

Where the hell do these people come from ? ....

[hendo]

3. if production increased,

so would driving, and we would likely not see a decrease in gas prices.

[lxlxlxl]

4. i could care less about opec. i just fear simplifying the problem is not going to help us.

trust me... i could care less about saudis/opec...they could disappear off the earth with their gold mercedez and i would not bat an eye.

but you have to view all pieces of this puzzle equally...in this political environment especially, how easy is it to just blame the arabs?
do we really want to inflate that sentiment?

read about boone picken's hedge fund. he uses huge amounts of money to artifically boost the price of oil. this is how the market works. it's
in the open and in our face as long as we know to pay attention.

[hendo]

5. I agree

it is horrible to just blame this on the Arabs, the oil companies want OPEC to set the price as high as possible. It is all one big game to them (the oil companies).