Today\u2019s volatility in oil markets and feverish trading in markets today reminds me of Saddam’s practices in the 1990\u2019s.\u00a0\u00a0Oil reserves were very low.\u00a0\u00a0There were contentious political discussions in the UN Security Council concerning a relaxation of sanctions on Iraq oil sales to provide resources for the relief of the Iraqi population\u2014what became known as the \u201cOil-for-Food\u201d program.\u00a0\u00a0Any hint of an agreement sent futures zooming or falling.\u00a0\u00a0<\/p>\n\n\n\n
The talks went on for a long time. Saddam\u2019s representatives in Switzerland engaged in the futures trades.\u00a0\u00a0 We found afterwards that positive statements from Baghdad caused swings, and the regime actors traded on advance knowledge. A revenue stream that was serious and endured so long as the talks continued. The longer the talks took, the longer that revenue opportunity continued.\u00a0<\/p>\n\n\n\n
I can\u2019t imagine that the IRGC or other Iranian actors are not doing the same.\u00a0\u00a0They don\u2019t need to know anything special, just need to know a comment will be made that implies threat or non-threat to oil market.\u00a0\u00a0\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"
Today\u2019s volatility in oil markets and feverish trading in markets today reminds me of Saddam’s practices in the 1990\u2019s.\u00a0\u00a0Oil reserves were very low.\u00a0\u00a0There were contentious political discussions in the UN Security Council concerning a relaxation of sanctions on Iraq oil … Continue reading