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Don’t blame oil price increase on the Iraq war
Thursday, December 29, 5:51 PM
Jessica Mathews cited a “fivefold” increase in oil prices among the staggering costs of America’s war of choice in Iraq [“A missed opportunity to combat WMDs,” op-ed, Dec 27]. The costs of our Iraq adventure in terms of lives and money are beyond dispute. However, to cite a fivefold increase in oil prices in this tragic litany is both inaccurate and misleading.
The price of crude oil in the United States averaged $31 a barrel in 2003 and $104 a barrel in 2011, through November — a little more than a threefold increase. More to the point, the war in Iraq played at best a minor and temporary role in this long-term price increase. From July to December 2008, U.S. crude oil prices plunged about 70 percent, from $133 to $42 a barrel as the seriousness of the financial crises and great recession took hold, and commodities speculators took note.
Our invasion of Iraq in 2003 coincided with the beginning of a probably permanent reduction in crude oil production outside of the Middle East. World demand for crude oil will continue to grow while the supply will continue to shrink. The price of crude oil reflects supply, demand and speculation, not our war of choice in Iraq, however misguided that choice was.
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Thursday, December 29, 5:51 PM
Jessica Mathews cited a “fivefold” increase in oil prices among the staggering costs of America’s war of choice in Iraq [“A missed opportunity to combat WMDs,” op-ed, Dec 27]. The costs of our Iraq adventure in terms of lives and money are beyond dispute. However, to cite a fivefold increase in oil prices in this tragic litany is both inaccurate and misleading.
The price of crude oil in the United States averaged $31 a barrel in 2003 and $104 a barrel in 2011, through November — a little more than a threefold increase. More to the point, the war in Iraq played at best a minor and temporary role in this long-term price increase. From July to December 2008, U.S. crude oil prices plunged about 70 percent, from $133 to $42 a barrel as the seriousness of the financial crises and great recession took hold, and commodities speculators took note.
Our invasion of Iraq in 2003 coincided with the beginning of a probably permanent reduction in crude oil production outside of the Middle East. World demand for crude oil will continue to grow while the supply will continue to shrink. The price of crude oil reflects supply, demand and speculation, not our war of choice in Iraq, however misguided that choice was.
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