Unanswered Questions

Abul-Rahman Al-Rashid says he – just like anybody else – wants to know why the government wants to keep the oil prices down. If the high prices will give us better income, why our government is trying to reduce them? I don’t really know why. I hope I could.

Meanwhile, the former Jordanian minister of information Saleh Al-Gallab is wondering why Iranians decided to detect the identity of their country as a Shiite Islamic country. Why the Iranians didn’t just say it is an Islamic country for all Muslims?

I don’t know if he has any idea about this, but in other Islamic countries, Saudi Arabia for example, Shiites are about 20% of the population and the government treats them like don’t even exist. Their children can’t have their religious education in the schools and they can’t even pray to God the way they want.

2 thoughts on “Unanswered Questions

  1. The government has nothing to do with oil prices. Of all the commodities in the world, oil is the one that moves most independently. Unless all of OPEC gets together and moves in one direction (ie, increasing output), no single factor can make oil prices move one way or the other. The government knows they have no control over it and simply hopes for the best. Rising oil prices mean inflation, and inflation is bad for the government in power. OF course, if you happen to live in an OPEC nation, then rising oil prices are good for you. Except that your imports go up in price because it costs more to ship them from their source.

    So there aren’t any total advantages to oil prices going up. If oil prices go down, then international shipping costs stay down. The OPEC countries still make out OK because oil is a high-margin commodity anyhow. And consuming nations breathe a sigh of relief when the prcies drop because everything else runs cheaper too.

    See, it’s best for oil prices to stay down.

  2. Sadly, pushing prices down will hurt the Saudi people. But of course it will help the American people and the Saudi government’s favor with the American government. The Saudi government does, in fact, have some degree of control of their crude prices because they can change output. The Saudi government is a member of OPEC, and yes, OPEC does have some degree of control over prices, but not as much as the production forces. I hate economics, by the way.

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