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Hoarding is exactly what the government is doing right now by filling the SPR, and frankly it's the best thing that could happen. It drives prices up. High prices encourage demand destruction. They also finance new well development. The hoarded oil gives us a buffer to fall back on once shortages become more prevalent. High prices are what we need in order to adapt to what's coming, and the sooner they happen, the better.

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Porter ties U.S. withdrawal from Iraq to $9 gasoline
Consumption; Demand; PricesGuest writes:

WASHINGTON -- Gasoline prices could rise to about $9 per gallon if the United States withdraws troops from Iraq prematurely, Rep. Jon Porter said he was told on a trip to Iraq that ended this week.

The Nevada Republican, who returned Tuesday from his fourth trip to Iraq, met with U.S. Army Gen. David Petraeus, U.S. Ambassador Ryan Crocker, Iraqi Deputy President Tariq al-Hashimi and Iraqi Deputy Prime Minister Barham Saleh.


"To a person, they said there would be genocide, gas prices in the U.S. would rise to eight or nine dollars a gallon, al-Qaida would continue its expansion, and Iran would take over that portion of the world if we leave," Porter said Wednesday in a phone interview from Las Vegas.

Porter did not elaborate on the assessment that gasoline prices could spike. His spokesman, Matt Leffingwell, said afterward that the scenario "makes sense if Iran moves into Iraq."

Las Vegas Review-Journal

Posted on Friday, August 31 @ 09:16:34 PDT by Leanan
 
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