Stalled Mideast peace talks blamed for soaring oil

Saudi is refusing to pump more crude to signal its 'displeasure at US pressure on the Palestinians' according to paper.

August 26, 2000, 10:49 AM LONDON (AFP English) - The failure of the Middle East peace talks at Camp David in late July is responsible for the recent surge in crude oil prices, according to analysts cited in Friday's Wall Street Journal Europe. Saudi Arabia - traditionally the Organisation of Petroleum Exporting Countries' (OPEC) leading dove, favouring more moderate prices - indicated its commitment to prices of between 20 and 25 dollars a barrel, following the last OPEC meeting in June, the newspaper noted.

As the world's leading oil producer, the newspaper argued the nation could have ensured enough oil to make that happen.

The fact that prices are well over 30 dollars a barrel in London and New York, it said, is because Saudi Arabia is refusing to pump more crude in order to signal its "displeasure at US pressure on the Palestinians to give up some of their claims on Jerusalem." A senior official at a major oil company was quoting as saying "people know this is happening but nobody will say it (for fear of antagonising the Saudis)." However, the newspaper also quoted a Gulf expert familiar with the thinking of the Saudi royal family as disputing the notion that Saudis had limited production or that politics had anything to do with Saudi oil policy.

http://www.arabia.com/article/0,1690,Business|27736,00.html

-- Martin Thompson (mthom1927@aol.com), August 26, 2000

Answers

Interesting tid-bit that I haven't seen before and I see a lot of oil articles.

-- Martin Thompson (mthom1927@aol.com), August 26, 2000.

That sure is interesting. But, then, Middle East politics, being what it is, could well be pointed in this direction.

-- Uncle Fred (dogboy45@bigfoot.com), August 27, 2000.

The 1973-1974 Arab oil embargo was all about politics--it was punishment of the U.S. for its support of Isreal in the Six Day War. Can easily understand how this kind of thing could be happening again.

-- JackW (jpayne@webtv.net), August 27, 2000.

What I can't understand is that Northern Europe is vastly dependent on Norwegian oil, production of which is plunging. Saudi Arabia is not going to make up for this deficit. What next in the oil dominoes?

-- Wellesley (wellesley@freeport.net), August 27, 2000.