ELECTORAL COLLUSION

The Saudi Ambassador to the U.S, Prince Bandar, is said to have assured Bush that oil prices would be down before the November election. The effort would be to increase Saudi oil production by 1 to 2 million barrels a day thus lowering the per/bbl price to around $28 US-- as of this writing, light sweet crude is going for $36.75 US per/bbl. Low gas prices and a rosey economic picture could help Bush get re-elected. However, having this little tidbit of information as part of the public discourse before the election is a huge political liability. One way the Bush Administration could pre-empt criticism, or allay suspicions, would be to get Bandar to start pumping up oil production now; though that would only confirm the suspicions of collusion. The story is already in the news cycle, but the question is whether it will have any legs. This, from Joshua Marshall at TPM, is how they're handling it:[Transcript]

QUESTION: Can you describe conversations between the White House and Prince Bandar about his essential promise to lower oil prices before the election?
MR. McCLELLAN: I think you heard from Prince Bandar a few weeks ago about --

QUESTION: He didn’t talk specifically about the election.

MR. McCLELLAN: -- the most recent conversation that we had with him regarding oil prices. And he expressed his views out at the stakeout to you all that Saudi Arabia is committed to making sure prices remained in a range, I believe it’s $22 to $28 price per barrel of oil, and that they don’t want to do anything that would harm our consumers or harm our economy. So he made those comments at the stakeout and we’ve made our views very clear that prices should be determined by market forces, and that we are always in close contact with producers around the world on these issues to make sure that actions aren’t taken that harm our consumers or harm our economy.

QUESTION: There were no conversations specifically about the President’s reelection?

MR. McCLELLAN: You can ask Prince Bandar to --

QUESTION: But from the point -- I mean, conversations are obviously two ways.

MR. McCLELLAN: -- what his comments were. But the conversations we have are related to our long-held views that we have stated repeatedly publicly, that market forces should determine prices.

QUESTION: To follow up on that then, I would gather that the White House view is one of expectation that the Saudis would increase oil production between now and November.

MR. McCLELLAN: Our views are very well-known to Saudi Arabia. Prince Bandar made a commitment at the stakeout that I will let speak for itself. You all should look back to those remarks.

QUESTION: We’re missing the allegation here, which is that Prince Bandar and the Saudis have made a commitment to lower oil prices to help the President politically. Is that your --

MR. McCLELLAN: I’m not going to speak for Prince Bandar. You can direct those comments to him. I can tell you that what our views are and what he said at the stakeout is what we know his views are, as well.

QUESTION: Does the White House have any knowledge of such a commitment?

MR. McCLELLAN: I’m sorry?

QUESTION: Does the White House have any knowledge of such a commitment?

MR. McCLELLAN: Again, I’m not going to speak for Prince Bandar. You can direct those questions --

QUESTION: Is there a deal?

MR. McCLELLAN: -- I wouldn’t speculate one way or the other. You can direct those questions to him, but I’m telling you --

QUESTION: I’m not asking you to speculate either. Do you have knowledge of such a commitment?

MR. McCLELLAN: I’m telling you what our views are and what we've stated, and I'm telling you what I do know, which is that our position is very clear when it comes to oil prices and what our views are. And Prince Bandar spoke to you all just a few weeks ago out at the stakeout after meeting with some White House officials and expressed --

QUESTION: So you have no knowledge of such a commitment?

MR. McCLELLAN: -- and expressed their view. I'm not going to try to speak for Prince Bandar. You can direct those questions to him.

QUESTION: The President is confident that the American elections are not being manipulated by the world's largest oil producer?

MR. McCLELLAN: Our view is that the markets should determine --

QUESTION: The market doesn't. It's a cartel.

MR. McCLELLAN: But our view is that that's what -- that the markets should determine prices. And that's the view we make very clear to producers around the world, including our friends in OPEC.