Oil Price Crash?

Reader Paul alerted me to this article on Saudi reaction to the on going violence in Iraq.

USING money, weapons or its oil power, Saudi Arabia will intervene to prevent Iranian-backed Shiite militias from massacring Iraqi Sunni Muslims once the United States begins pulling out of Iraq, a senior security adviser to the Saudi government said yesterday.

Diplomats and analysts say Iraq's Sunni Arab neighbours, led by Saudi Arabia, fear that the sectarian violence could spill into large-scale civil war between Shiites and Sunnis and set off a political earthquake far beyond Iraq.

Nawaf Obaid, writing in the Washington Post, said the Saudi leadership was preparing to revise its Iraq policy to deal with the aftermath of a US pullout, and is considering options including flooding the oil market to crash prices and thus limit Iran's ability to finance Shiite militias in Iraq.

Gasoline just jumped 13 cents from yesterday morning until yesterday afternoon (30 Nov), here in Rockford. In other words if they are really planning to pump all out, the pumping has not yet started and no one is factoring such action into the price.