Saudi Arabia is once again, as it did in 1973, using oil as a weapon in international politics--a very dangerous game. OAPEC started the embargo in response to the United States involvement in the 1973 Yom Kippur War. Six days after Egypt and Syria launched a surprise military campaign against Israel to regain territories lost in the June 1967 Six Day War, the United States supplied Israel with arms. In response to this, OAPEC announced an oil embargo against Canada, Japan, the Netherlands, the United Kingdom and the United States.[3] en.wikipedia.org/wiki/1973_oil_crisis Approximate production costs of oil: US shale--$65 to $95 bismarcktribune/news/columnists/ed-lotterman/shale-oil-s-complex-cost-of-production/article_e604ff26-820e-11e4-b5f3-b361fe2e0630.html Iran--$136 Russia--$102 Saudi Arabia--$92 Venezuela--$121 Present market price--$54.73 The Saudi oil minister recently said that the country will not reduce production even if the price falls below $20 per barrel. The Saudis seem to be targeting Iran and Russia in a war without bullets, but other producers are getting hurt, too--while consumers celebrate. gatestoneinstitute.org/4988/saudi-arabia-oil-price
Posted on: Mon, 29 Dec 2014 13:12:47 +0000