Windfall time

It's not autumn yet, but don't tell the Big Oil. The war in Iraq is finally paying some dividends, for some.

Exxon Mobil, Shell, Total and BP — the original partners in the Iraq Petroleum Company — along with Chevron and a number of smaller oil companies, are in talks with Iraq’s Oil Ministry for no-bid contracts to service Iraq’s largest fields, according to ministry officials, oil company officials and an American diplomat.

Key words: no-bid, future contract. Western big oil companies regain control over Iraqi oil field, mission accomplished. When will it be reflected in the pump price is another matter. The price: trillions of government spending and a couple thousand young man's life.

In the other news, China raises gas price today by about $0.6 a gallon, bringing it closer to the international price. The wealthy on the coastal regions are sure to complain, but the old price surely wasn't sustainable. In a way, China, given its world manufacturer status, was subsidizing the whole world. What it will entail on the inflation front is interesting to keep eyes on.

Stumble upon: One of the best analysis on China I read recently

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