IRAQ THREAT TO WORLD OIL PRICESgreenspun.com : LUSENET : Grassroots Information Coordination Center (GICC) : One Thread
IRAQ THREAT TO WORLD OIL PRICES
Iraq could heighten the world oil crisis as part of a bitter row with neighbours Kuwait.
The Iraqi leader is angry at claims Kuwait is stealing oil from its fields and United Nations restrictions on his revenues.
Cutting production would cause further mayhem to world oil supplies - and have an impact on British prices.
Oil analyst Ole Slorer, of Morgan Stanley Dean Witter, said "it would not be a pretty picture", if Saddam decided to cut the flow of Iraqi oil.
He added: "I don't think anybody would like to speculate on his motives. The fact is we are totally dependent on a guy like that co-operating."
Mr Slorer explained that Iraq currently exports about 3 million barrels of oil a day, which enters the west by way of pipeline through Turkey.
If that supply was stopped, the shortfall would have to be made up by countries like Saudi Arabia. However a similar amount of oil could only be exported by 50 to 60 supertankers. Mr Slorer added: "We have not got that capacity."
Prepared for action
Iraq has been threatened with military action if it unleashes strikes against Kuwait as part of the on-going oil dispute.
Saddam claimed Kuwait was stealing oil from fields that straddle the border and warned it would take unspecified measures against Kuwait.
Yet international leaders are ready for action. Madeleine Albright, US Secretary of State, said: "We do have a credible force in the region and are prepared to use it in an appropriate way at a time of our choosing."
A similar row broke out before Iraq marched into Kuwait on August 2, 1990 a move that sparked the Gulf War conflict. . http://ad.doubleclick.net/adi/www.skynews.co.uk/news/world/story14;cat1=world;sz=130x60;tile=2;ord=162628?
-- Carl Jenkins (Somewherepress@aol.com), September 15, 2000
Tanker capacity, to haul over the high seas, just ain't there.
-- Wellesley (firstname.lastname@example.org), September 15, 2000.
When you realize that Saddam controls 3 million barrels a day of oil delivery, you must also realize that this insane man controls world oil markets. That's the difference between just-get-by status and a panic shortage.
-- Chance (email@example.com), September 15, 2000.
So, what do we do now? Punt?
-- Uncle Fred (firstname.lastname@example.org), September 15, 2000.