April 20, 2004

A mind boggling question

MABB is a registered TM.

There is a question which is currently circulating the internet that boggles my mind.

Does president Bush have a deal with Saudi Arabia's prince Bandar to help him get re-elected?

The argument goes: President Bush has a deal with Saudi Arabia's prince Bandar, so the latter will help Bush lower gas prices in the US just in time for the elections.

In a news report I read on MSNBC, I learned that the recent OPEC cut in oil production was at the urging of the largest oil producer within the cartel, Saudi Arabia. As a result, OPEC cut production by about 10 per cent. The arguments for the cut are based on the cartel's assumption that demand for oil will subside in the northern hemisphere due to warmer weather. In the meantime, the price for a gallon of gas is currently at an all time high ($1.76 per gallon), with tendencies to keep increasing.

In recent days, Saudi Arabia, has come out to reassure the US that it will not allow oil shortages to harm world economic growth. This statement sets the stage for a future increase in oil production by none other than the Saudis.

If one looks at this events with an skeptic eye, one easily comes to certain conclusions.

However, unfortunately, things are not that easy. There are more factors to take into account. For example, the facts that the US is currently buying oil to replenish the nation's emergency crude stockpile (of course, this fact can also be seen with skepticism). Another example is the fact that China is also eating up enormous amounts of oil in response to its growing needs. Another argument cited is the weak value of the dollar, which hurts the US. And of course the disruption in Iraq's oil production due to the war and Venezuela's production due to political instability, add to the mix. (source)

I don't think we will ever know if Bush has such a deal with Saudi Arabia. Nonetheless, there are many questions left lingering.

1. Why is it that Bandar has access to top secret information?
2. Why has the administration (Bush) not put more pressure on OPEC and Saudi Arabia to keep the price of gas from rising the way it has been rising?
3. If gas prices do come down by November, will it be just bad (or good) timing (for Bush) or a mere coincidence?