Posted on 10/22/2008 8:44:12 AM PDT by markomalley
I bet George Soro’s stuck it to the Oil folks too with his game of minipulation the markets. He is the screwball behind the world crisis we face today.
HUH? Doesn’t make sense. Chavez and Russia are at the mercy of US, and OUR ECONOMY, not vice versa. That’s becoming increasingly obvious. Chavez won’t last another two years with prices at this level, let alone lower.
HUH? Doesn’t make sense. Chavez and Russia are at the mercy of US, and OUR ECONOMY, not vice versa. That’s becoming increasingly obvious. Chavez won’t last another two years with prices at this level, let alone lower.
bfl
I think the author is hinting at a really drastic cut in OPEC oil production although he doesn’t come right out and say so. There’s a silver lining in that dark cloud though. Maybe we’ll wake up and start the process of taking care of our own energy needs.
How ironic: Bush came into office with al-Qaeda in Afghanistan, Saddam in Iraq, Khaddafi in Libya, the nut in N. Korea, and Iran as the major threats to American security. He deliberately pretty much destroyed #1 and 2, forced #3 into surrendering his WMDs without a fight, and now has through sheer accident of fate neutralized to some degree Iran. Only NK remains.
Ping.
I wonder if our so called leaders will give them a bailout. /sarc
interesting piece - thnx for posting
I knew gas was el cheapo in Venazuela, but didn’t know Chavez was practically giving away so much oil to Latin American countries. LOL, what a putz.
I absolutely agree, Iran is crossing its legs like a three year that has to pee just trying to hold off on annihilating Israel in the hopes they can get Obama in the Whitehouse.
Iran depends on high oil prices to fund its genocide war efforts, these falling oil prices may actually force Iran to take action ahead of time which is good, I would rather my enemy attacked out of the blue than to sit across the street building up more offensive powers on a daily basis.
Crude oil is at $68.11 ppb at 12:08 pm EDT...*was* down to $67.50 per barrel earlier today.
Venezuela is not the long term member of OPEC, they are the ORIGINAL OPEC nation. A Venezuelan, Juan Pablo Alfonso Perez, found OPEC with the Saudi’s and modeled it on the old Texas Railroad Commission (the TRC actually monitored and controlled Texas oil production back when the Houston price was the world price).
Read Adam Smith's great book ‘Paper Money’ to see how OPEC came into being.
In 1987, oil fell as low as $7 per barrel. Anyone who thinks that OPEC will get it's act together now is kidding themselves. The Saudi’s are going to use this market to teach their brethren a lesson about allowing price increases that encourage substitute energy approaches.
The Iraqi's are going to increase production.
Don't be surprised if the US announces it will REDUCE its purchases of Venezuelan crude. Venezuelan crude is best suited for our refineries, it will not be easy for them to sell elsewhere.
“Putin and Chavez can stir up turmoil on the cheap.”
Maybe Joe Biden is right on Obama being tested in his first six months like JFK. Russian missles in Venezula?
Remember the cornered animal example in this article.
The real threat is that one only knows that a cornered animal will fight. How he will fight depends on his mental capabilities.
I would more likely expect Russia to do something to upset middle eastern oil production to the point that Russian oil became more valuable.
Say for instance egg Iran into war with Israel, this dragging the entire middle east into the conflagration.
Or doing something to bait Israel into the first strike...who knows?
All we do know is that dictators have used war for centuries to build their power base at home.
Many threads I have said this, but the power is in the hands of those who purchase, not sell the commodity, whether it is Oil or manufactured products from China.
Once purchasers stop purchasing, the sellers will suffer big-time.
Here’s a sample diversion the author is referring to.
http://www.freerepublic.com/focus/f-bloggers/2112214/posts
Even if OPEC cuts production, I don’t know how this will really put a floor under crude prices.
During the entire runnup of prices over the past few years, the big ‘supply/demand’ explaination was Excess Global Production Capacity. In fact, this excess got down to ~1MM bbls/day at one point. If OPEC now cuts production, it does not reduce Excess Global Production Capacity. In fact as demand continues to drop and new production comes online, this number will continue to increase.
“Plunging Crude Oil is a geopolitical time bomb”
There’s just no pleasing some people.
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