Chapter 7 Summary and Analysis

OPEC had effectively narrowed oil exports as they continued to make more government to government deals that did not require middle men. However, the demand for oil remained high and Rich, with his unlimited Philipp Brothers' bank roll, fulfilled that demand at whatever price the market would bear. The oil-producing nations were glad to unload their gluts of oil on Rich. Transportation and storage of the oil was a problem for Philipp Brothers. Nonetheless, Rich and Pinky continued to make oil deals usually without New York's knowledge. Although Jesselson believed in his protégé, the Board of Directors was very concerned with the risks that Rich was taking. The company was willing to speculate on commodities but risky oil deals were new and somewhat off-putting to the board.

The Board members were frantic when learning of Rich's oil deal with Iran...