(Washington Institute for Near East Policy) - Simon Henderson World oil supplies will increase as Iraq raises its oil production capacity to its full potential, which may amount to 5-6 million barrels per day. Cheap oil will boost the global economy, reduce Arab control of the oil market, and allow the U.S. to become less dependent on Saudi Arabia and better positioned to demand reforms from Middle Eastern regimes. The end of Saddam's regime will also reduce Russian and French influence in the region. Although the Saudis agreed to increase oil production, they were not as helpful as they could have been. The smaller Gulf Cooperation Council (GCC) states have increased in power and may begin to resist Saudi dominance in the Gulf.
2003-05-09 00:00:00Full ArticleBACK Visit the Daily Alert Archive