Saudi Arabia Admits to Price Gouging

Saudi Arabia and their Wahabi sect of Islam have declared war on the world over and above their sponsored acts of terrorism over the last thirty years. What we've been told about oil and its marketplace is untrue.

1. The current price of oil is the result of increased demand coming from China - Untrue.
2. The law of Supply and demand rules the global marketplace. - Untrue.
3. There is a global free market in oil. Untrue.

There is no free market in oil. A free marketplace, defined, involves competition. There is no competition in oil and, thus, no free marketplace. Oil is ruled by a cartel that arbitrarily fixes prices at their whim. The central functionary in this syndicate is Saudi Arabi who promotes a warped religious agenda and has now moved into usury price increases to force western interests to bow to their religious agenda. The price of American domestic crude is set by this cartel (Opec).

Seventy five persent of American oil consumption is produced here in the United States but the prices for that crude is set by Opec and Saudi Arabia. If there was a free marketplace American crude would be sold at lesser prices due solely to the fact that it is cheaper to produce and refine crude here in the U.S. than it is to import from a greater distance. American producers cite their price increases are a result of global marketplace demand. As there is no free marketplace - the argument fails.

If competition truly existed, the price of American crude would drive down Opec's prices. This produces an enormous windfall for American Oil Companies. In the eighties, when Opec was flexing its muscles, Congress passed the Windfall Profits Tax. This was promoted to the public as being a tax on the profits of Oil Companies benefiting from Opec's contrivances. This was a lie! In fact, this tax did not cost Oil Companies one cent, nor was it intended to. It was applied against the people (mom and pop) who owned the land from which the oil was pumped. The tax rate was 80% and it did not touch the billions of windfall to oil companies benefiting from Opec's price increases. It did, however, efficiently rape the little guy.

 In the current contrivance of a crisis, Congress will not address the greed of this closed marketplace but will (again) go after the mom and pop while at the same time giving the impression they are actually addressing the problem (unrestrained greed).

In any business, there is a formula for setting the retail price of any product. It is a simple one. Cost of production + costs of delivery + profit margin = retail price. In Oil, the profit margin is a variable that has a bottom - but no ceiling. These 'facts' are visible to anyone who wishes to view them.

However, let us not be constrained by the dictums of logic and reason. We can turn to the Saudi's themselves for the truth The Saudi Port Authority web site tells us exactly the relationship of goods shipped by all of  Saudi Arabia's ports compared to the same period last year. Read for yourself http://www.ports.gov.sa/ as of 9/3/2005

63 Million Tonnes handled during First Half of 2005
The total tonnage handled in all Saudi Ports during the first Half of 2005 reached around 63 Million Tonnes, with an increase of 10% over the same period of the previous year ( Imports 16.5%, Exports 6.6% ).
Over all Saudi exports (oil included) rose 6.6% this year over the preceding year. Yet!, the price of crude has doubled - a 100% increase.

 It doesn't take a genius to do the math and to fill in the blanks as to why. The Saudi's are attempting to hold the west hostage to their aberrant religions dictums. It is a wonderment to this writer why the Bush Administration chooses to brown nose the Saudi's who, in fact, were the supporting cast for 9-11 and are actively interfering with our efforts to bring democracy into Iraq. Combine this with Iran and this single snake has two heads - both begging removal.

The Saudi's might take a lesson from  Japanese history. In the 40's the U.S., unwisely, placed an embargo on oil shipments to Japan in an effort to force them to constrain their invasions into Manchuria and China. Japan is a country with virtually no national resources and everything (oil included) must be imported. The Japanese military calculated how much time they had left (based on oil) before they'd be forced to their knees. Instead of submitting, they attacked Pearl Harbor and entered World War II against the United States.

The cornerstone of Arabic governments is rule by a dictator who insures his survival by force, threat of force, torture, murder or any tool or contrivance that will force their enemy to their knees. Reason and diplomacy are simply ruses to promote the agenda. In truth, Arabic cultures validate and value only one currency - force. Logic and reason are viewed as the tools of weak and stupid people and they do view Americans as stupid.

In truth, the purveyors of religious hatred in Saudi Arabia and Iran are the morons for believing they can force us submit to their dictates or that our domestic or foreign policies will be set by Middle Eastern potentates who became wealthy because American oil interests drilled the wells and developed the resources they'd now endeavor to use as a weapon against us.
Howard Hughes (an American)  invented the diamond drill bit that made it possible - not an Arab from Saudi Arabia.

HQ has copied the exact Saudi web page as it existed on 9/3/2005 Saudi Port Authority Web Page


Caligastia 9/3/2005