Article: OCEAN OF CHEAP OIL DILUTES OPEC POWER SAUDIS ACT TO FORGE CONSUMER LINK.(Main)

Byline: Donald Woutat Los Angeles Times

When the oil minister of Saudi Arabia sat down with the chairman of Texaco at a London hotel last month, they did some business that could ripple far beyond the bounds of their $2 billion refinery deal.

Buying into Texaco oil refineries in Louisiana, Texas and Delaware, as well as 11,500 service stations emblazoned with the familiar Texaco star, the Saudis were dealing another blow to the Organization of Petroleum Exporting Countries.

The world's biggest oil exporter was dramatically advancing a commercial strategy that some believe will drive a permanent wedge between the haves and have-nots in OPEC's ...

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