Posted on 12/11/2014 5:09:09 AM PST by thackney
Iran’s President Hassan Rouhani said Wednesday that the sharp fall in global oil prices is the result of “treachery,” in an apparent reference to regional rival Saudi Arabia, which opposed production cuts.
Oil prices have plunged by more than 40 percent since June to around $65 a barrel, placing severe strain on Iran’s economy, which is already hobbled by international sanctions imposed over its nuclear program. An OPEC meeting last month failed to reach agreement on production curbs, mainly because of Saudi opposition.
Rouhani told a Cabinet meeting Wednesday that the fall in prices is at least partly “politically motivated,” the result of a “conspiracy against the interests of the region, the Muslim people and the Muslim world.”...
Per your charts worldwide oil consumption grew from 83 million bpd in 2009 to 92 million bpd in 2014.
Lower prices will only stimulate consumption, so where is the slow down forcast coming from?
Yes they will, but it isn't immediate. Everyone didn't throw away their cramped high mpg subcompacts in a couple months.
If they get hungry, we can sell them wheat and gouge on the price, just like they stick it to us when WE are buying oil.
We can force them to BS alliances with their enemies JUST to get their hands on wheat! :)
I quote a comment from http://eaworldview.com/2014/12/iran-analysis-tehran-fail-secret-meeting-saudis-oil-price/:
“I cannot see where Saudi Arabia loses on any front from lowering oil prices.
With its considerable foreign reserves and sovereign wealth fund, it can withstand lower oil prices for years to come.
Lower oil prices harm Iran and Russia, two states that threaten Saudi interests in the region.
Lower oil prices completely undermine US shale, thus preserving Saudi Arabia’s hold on global oil production and prices.
Lower oil prices boost global economic growth, helping Europe in particular – a major market for Saudi exports and investments.
It is Saudi Arabia’s trump card. The only possible downside is that it is no longer left with any strategic depth.”
The Iranians people never see the money anyhow... that’s for their corrupt ‘leaders’...
Good point. Lower oil prices should decrease the chance of war. Oil simply won’t be worth fighting over. Granted a war would be the way to raise prices though.
It's like being half dead and the doctor only giving you enough oxygen to
just barely live so they have people to rule over.
So we can expect Venezuela to invade Columbia if oil stays low ? Or Iran will attack Saudi Arabia ?
Oil revenue isn’t ‘other people’s money’, where did you get that crazy notion?
What’s not to understand?
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