Posted on 12/16/2014 11:13:56 AM PST by Star Traveler
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.
This price plunge has been driven by Saudi Arabia, OPEC’s dominant power. While it’s true that part of Riyadh’s actions respond to the energy renaissance in North America, the greater motivation is breaking Iran’s will.
The Saudis believe they can no longer rely on the US to contain Tehran’s imminent nuclear threat, so they’re out to do what our lukewarm sanctions couldn’t.
There’s no love lost between the Saudis and the Russians, either. The Saudis want the Assad regime in Syria to go. Moscow props it up.
(Excerpt) Read more at nypost.com ...
Even worse are the one that think since Saudi won’t raise oil prices by cutting production, the feds should force the US prices higher than the rest of the worlds with more taxes.
by restricting production in the past, Saudi Arabia state controlled cartels caused artificially high prices. now the artificially high oil price bubble is bursting .
this severe price drop is all caused by Saudi Arabia and OPEC STATE controlled cartels
in a free market price would be stable as no such artificially high prices would have existed for so long.
You could even make the argument, that by not increasing production over the last few years, they have helped the US build a substantial increase in our oil production. Our real growth would not have happened in the low prices of early 2009 had continued.
in a free market price would be stable
Actually, commodities markets show pretty clearly stable prices are not normal outside of a cartel willing to manipulate price. I'm not arguing OPEC is a good thing. But utopia doesn't exist in the oil industry with or without OPEC.
I posted this earlier on another thread...
This is actually pretty troubling. Anybody remember the lead up to Pearl Harbor and the second world war?
For those of you that don’t, it was all about the money. Their economy was being squeezed. Russia could be very dangerous in a situation like this.
The bright spot is that it is OPEC (namely the Saudi’s) that are screwing with the price of oil to damage our production and that is hurting Russia more than so far it is hurting us.
Poking one’s finger in Russia’s eye may not be wise. Russia could very easily change the equation in their favor by sponsoring an attack by Iran on the Saudi’s.
Just saying... These are dangerous times.
Agree—what are we prepared to do if Russia, Iran and Syria decide to attack Saudi Arabia?
So you see the gold commodities market as being stable since there is no cartel controlling 40% of the market?
OPEC is part of the market. Even though we don’t like it, it is part of the supply curve, just like our EPA, regulations and taxes all effect the curves.
It’s the Mideast. Alliances are complicated and always shifting.
And if pigs had wings, they could fly.
But I have to work in the real world.
Cheers!
The complete disintegration of the Arab Middle East is the goal of Iran, and Russia’s supported it because they want to keep competitors out of the EU market.
Has Venezuela cut off the oil to Joe Kennedy yet?
no actually the state cartel cause this artificial fake price bubble that is now bursting by hiding real supply from the market.
I’m not claiming we needed.
But wishing won’t make it go away.
No doubt you have seen the Obama is getting ready to poke Putin some more. He is getting ready to announce more sanctions is my understanding.
The whole scenario smells like an agreement between Obama and the Saudis. If so, he’s not so dumb. He achieves:
1) an indirect attack against the frackers, many of whom will go out of business;
2) damaging Russia;
3) damaging Iran;
4) lowering prices at the pump, good for his image;
5) making alternatives look better, even though they largely defy the second law of thermodynamics.
:)
the Obama = that Obama
You believe that Obama convinced the Saudi’s to not cut production and lower their revenues, for his image?
And how does lower gasoline prices make alternatives look better?
“Agree—what are we prepared to do if Russia, Iran and Syria decide to attack Saudi Arabia?”
Obama will do nothing because he is chicken $hit.
And that’s probably a good thing because we don’t need a nuclear war with Russia. It could be that the Israelis will though.
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