Numbers of leftists predicted with certainty that following the November elections oil prices would rebound. Their conspiracy theory had it that Bushalliburton was conspiring with its flunkies to dupe the ignorant masses into voting Republican. Once the elections were over, the sheep would once again be sheared by the oil patch gang.Exactly the contrary has happened. Oil prices are going down. Warm weather in the eastern United States helped, as did a slowing of our economy. There hasn't yet been and won't be a chorus of apologies, or even demands from the right for a reckoning. Such foolishness speaks for itself. Only one actor has the ability to substantially influence oil prices at the margin: Saudi Arabia. The reason is simple. Only Saudi Arabia has substantial unused production capacity. Because it can raise or lower its own production by roughly 3 million barrels a day, Saudi has an oil weapon to use. The major use for the weapon has been to enforce some discipline on OPEC....(Read Full Post)