"Obama ready to drain Iran of oil revenue; Concludes market supply is sufficient" by Annie Lowrey | New York Times, March 31, 2012
WASHINGTON - After careful analysis of oil prices and months of negotiations, President Obama determined on Friday that there was sufficient oil in world markets to allow countries to significantly reduce their Iranian imports, clearing the way for Washington to impose severe new sanctions intended to slash Iran’s oil revenue and press Tehran to abandon its nuclear ambitions.
The White House announcement comes after months of back-channel talks to prepare the global energy market to cut out Iran without raising the price of gas, which would benefit Iran and imperil the economies of the United States and Europe.
Then why has it been going up?
Since the sanctions became law in December, administration officials have encouraged oil exporters with spare capacity, particularly Saudi Arabia, to increase their production. They have discussed with Britain and France releasing their oil reserves in the event of a supply disruption.
And they have conducted a high-level campaign of shuttle diplomacy to try to persuade other countries, like China, Japan, and South Korea, to buy less oil and demand discounts from Iran, in compliance with the sanctions.
The goal is to sap the Iranian government of oil revenue that might go to finance the country’s nuclear program.
Even though they are not building a weapon.
Already, the pending sanctions have led to a decrease in oil exports and a sharp decline in the value of the country’s currency, the rial, against the dollar and euro.
Administration officials described the Saudis as willing and eager, at least since talks started in the fall, to undercut the Iranians.
One senior official who had met with the Saudi leadership, said: “There was no resistance. They are more worried about a nuclear Iran than the Israelis are.’’
If true the House of Saud is such a slave.
Still, officials said, the administration wanted to be sure that the Saudis were not talking a bigger game than they could deliver. The Saudis received a parade of visitors, including some from the Energy Department, to make the case that they had the technical capacity to pump out significantly more oil.
But some US officials remain skeptical. That is one reason Obama left open the option of reviewing this decision every few months. “We won’t know what the Saudis can do until we test it, and we’re about to,’’ the official said.
Think of this EXPERIMENTATION the next time you are filling up the old gas tank to the tune of $5 (or more) a gallon, 'murkn.
Worldwide demand for oil was another critical element of the equation that led to the White House decision on sanctions.
Yeah, except DEMAND is DOWN!
Now, projections for demand are lower than expected because of the combination of rising oil prices, the European financial crisis, and a modest slowdown in growth in China.
As one official said, “No one wants to wish for slowdown, but demand may be the most important factor.’’
Nonetheless, the sanctions pose a serious challenge for the United States. Already, concerns over a confrontation with Iran and the loss of its oil - Iran was the third-biggest exporter of crude in 2010 - have driven oil prices up about 20 percent this year.
If true we have Israel to thank. The other factor is Bernanke's endless printing of money to keep Wall Street out of jail -- consequently making the money in your pocket worth less. That's why prices are rising.
A gallon of gas costs $3.92, on average, up from about $3.20 a gallon in December. The rising prices have weighed on economic confidence and cut into household budgets, a concern for an Obama administration seeking reelection....
Moreover, the new sanctions - which effectively force countries to choose between doing business with the United States and buying oil from Iran - threaten to fray diplomatic relationships with close allies that buy some of their crude from Tehran, like South Korea.
But in a conference call with reporters, senior administration officials said they were confident they could put the sanctions in effect without damaging the global economy....
And WHAT IF they are WRONG?
“We just don’t know how much negotiating advantage we have gained,’’ said one senior administration official who has been involved in developing the policy....
Think it is WORTH the PRICE at the PUMP to have a NEGOTIATION ADVANTAGE, 'murkn?
Related: US Senate Cares More About Israel Than America
Incredibly, Congress is even more of a slave to Israel then the administration.
And the pain will only be worse here in old New England:
"In region, an added threat on gas prices; Refinery closings could drive up costs" March 05, 2012|By Erin Ailworth, Globe Staff
Gasoline prices, rising quickly across the country, could increase even faster in New England over the next year because of the shutdown of three refineries that serve the Northeast and the likelihood that another could close in the summer.
Economists estimate that the loss of these plants, which account for at least half of the East Coast’s refining capacity, could boost New England gas prices by as much as 15 cents per gallon - over and above increases driven by unrest in the Middle East and other global factors. The additional price increases would result largely from added costs of transporting fuel from Gulf Coast or overseas refineries.
The price of diesel and heating oil, which also are refined at the facilities, could rise as well.
“If they can’t get [replacement supplies], your prices are going to spike,’’ said Phil Flynn, an oil analyst with PFGBest in Chicago.
The more Northeast refineries that close, the more vulnerable New England becomes to higher prices and supply disruptions because of its lack of energy infrastructure, said John Felmy, chief economist at the American Petroleum Institute, an industry group in Washington.
“You don’t have refineries in New England, you don’t have pipelines,’’ Felmy said. “You’re really an island.’’
Refiners are shutting plants after losing billions of dollars in recent years due to a combination of factors.
This as the parent companies that own them -- the big oil companies -- make BIILLIONS per quarter in PROFITS!
The weak economy lowered demand for gasoline, tighter environmental regulations raised costs, and increased global competition squeezed profit margins....
Then the LAW(?) of SUPPLY and DEMAND NO LONGER APPLIES to what is OBVIOUSLY a MANIPULATED MARKET!
Gas prices are at record levels for this time of the year, largely driven by fears that tensions with Iran could disrupt oil supplies....
Yeah, THANKS, Israel!!!
Related: State steps up oversight of prices at gas stations
"As if gas prices weren’t high enough, several states across the United States are looking to raise fuel taxes they say are needed to pay for roads and bridges that are outdated, congested, and in some cases, dangerous....
Right, the state is looking out for you at the pump.
More: Patrick aides say $200m is limit for road, bridge help
Yes, banks and well-connected corporations need to get their cut of the tax loot first.
Sick of the charade yet?
"More US oil drilling doesn’t mean lower gas prices; Statistical review finds no link between the two" by Jack Gillum and Seth Borenstein | Associated Press, March 22, 2012
WASHINGTON — Political rhetoric about the blame over gas prices and the power to change them — whether Republican claims now or Democrats’ charges four years ago — is not supported by cold, hard figures. And that’s especially true about oil drilling in the United States. More oil production in the United States does not mean consistently lower prices at the pump.
Yeah, for some reason we are treated to the SAME OLD ARGUMENTS EVERY TWO and FOUR YEARS while NOTHING CHANGES in the interim.
Sometimes prices increase as American drilling ramps up. That’s what has happened in the past three years. That’s because oil is a global commodity and US production has only a tiny influence on supply....
Also see: Obama to fast-track oil pipeline, other projects
Even though my paper tells me it won't matter.
Obama Closes Canada Pipeline For Political Purposes
Now he is opening it for same.
Update: Time waning for talks with Iran, Clinton says
Are you READY FOR ANOTHER WAR, America?!!!!
Israel said they were going in April, May, or June., and it now looks like sooner rather than later!!
It has been an HONOR to SERVE YOU, dear readers. May we meet again on the other side.