Posted on 12/14/2014 2:08:05 PM PST by elhombrelibre
This week, oil fell through the price floor of $60 a barrel and gas at my local filling station was $2.26 a gallon.
That’s great news for commuters and almost every business, but wonderfully bad news for our ugliest enemies.
If oil prices remain low through next year, the effect on rogue governments, from the Russian Federation to Venezuela, will go from damaging to devastating.
But Western economies (and China’s) stand to benefit, with cheap oil possibly tickling Europe’s snoozing markets awake. Even most underdeveloped states will get a welcome break.
(Excerpt) Read more at nypost.com ...
For the Saudi’s, this is ALL about bankrupting ISIS.
As far as “targeting” goes, 18% of all High-Yield Bands held by U.S. Banks are in Oil companies/Oil Exploration. Besides, government, it has been the ONLY US Growth Industry in the Obamunist Era.
If that 18% unwinds, we are, yet again, going to get screwed, while the banks are made whole.
Gas was about $2.70 yesterday here in Northern Ohio. And Cleveland used to have the Sohio refinery!
the bottom line is that the Saudi’s need the money no matter what the price. Their hold on power there is tenuous at best even when oil is $120/bbl. To furlough people to cut production hurts them, it’s idle hands are the devil’s workshop and Allah is the devil, a short trip.
“And Cleveland used to have the Sohio refinery!”
“Used to...” being the key words.
More jobs and competition driven out of America by Government regulation.
How long can the Saudi’s withstand low oil prices? One year, two years? Like all nations, they too have bills to pay and have to make investments in their future.
A reduction in revenues has opportunity costs that have to be considered.
Couldn’t happen to a nicer country.
Is that like, the Rolling Stones, ZZ Top?
On a clear evening, I could see the catalytic cracker from our house in Independence! Steel mills were running around the clock back then. Everybody had jobs, but the city and air was pretty lousy. All the houses near The Flats were rust-colored brown!
I’m not being sympatico with them, just wondering how much pain they can take and for how long. It wouldn’t be a surprise if the Saudi’s suddenly “reassessed” their position and cut production. Just my opinion.
to offset lower revenues they pump more...
They have a multi-pronged effort. Russians, Iran, Qatar, Venezuela, and US fracking.
sub $40/bbl helps them in many ways....the Russinas don’t have the money to play games with Iran is probably the most pressing to them, Qatar rocking the boat, are also targets. Mexico suffers, Venezuela suffers, and US fracking goes belly up.
(Gary US Bonds....)
Netflix, Lillyhammer.
Western economies (and China's) stand to benefit, with cheap oil possibly tickling Europe's snoozing markets awake. Even most underdeveloped states will get a welcome break.China will use the opportunity to squeeze Russia; India will spike upward; Brazil will go into the tank. South Africa is and has been in the tank already, and will derive little benefit from cheaper oil, as commodities are following oil down. So much for BRICS. Thanks elhombrelibre.
Just read today that Saudis say they can handle oil at $40/bbl long enough.
Townes’ brother?.....(from a different mother)
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