Oil firms wait as Iraq crisis unfolds

Old Blog Import

Another Tom Tomorrow tip:

a new Iraq oil boom could begin within two years of the war’s end …. Once production reaches its full capacity, they say, the enormous increase in supply could weaken OPEC, the oil producers’ cartel led by Saudi Arabia, lower international oil prices for the foreseeable future and shift the balance of power among the world’s major oil producers.

"OPEC is already significantly fractured, and this would already add to its internal frictions," said Reuel Marc Gerecht, a fellow at the American Enterprise Institute who formerly was a U.S. diplomat and CIA agent in the Mideast.

"It would definitely diminish the Saudis’ influence (over the United States) and would cause the Iranian regime a lot of trouble."”

SF Gate