Oil Continued

Wall Street Journal reads my blog and fills in more data.

"The price of oil tends to be volatile, and it could bounce back quickly. But if sustained, the decline in prices would have a big impact on everything from the American consumer to the profits of giant energy companies. It also could dent the revenues -- and the political clout -- of major oil-producing nations like Russia, Iran and Venezuela.

A senior official of the Organization of Petroleum Exporting Countries said yesterday that OPEC will consider the need for an emergency meeting to weigh what it should do to halt the price slide. OPEC already was cutting back its production sharply, the official said. He didn't specify whether the cartel would consider cuts beyond the 1.7 million barrels a day it has already pledged to remove from the market.

If lower oil prices lead to a reduction in what American consumers spend on gasoline, it would leave them with more money for all kinds of discretionary purchases, such as restaurant meals, movies and vacations. That spending could provide a welcome cushion for the U.S. economy, which is grappling with a sharp downturn in the housing sector. It could also give a boost to airlines and auto makers, which have been hurt by high fuel prices."

But they miss the Geopolitical point of how this plays against Iran, among others. The Saudi's are still the swing producers. How does this fit the Sunni/Shia rift, the Arab/Persian face off?

Not to mention Hugo Chavez, Russia and China.

And what will Congress have to say?
Any help for the oil industry?