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Oil Glut and the Dollar

10 posts in this topic

According to http://www.zerohedge.com/news/2015-11-12/something-very-strange-taking-place-coast-galveston,

there are over 30 oil tankers sitting off the coast of Galveston, TX. But it appears that the Saudis must keep pumping and shipping oil in order to prop up the petrodollar. How long can this continue, and what happens when there is no more room for oil storage? Maybe the Feds aren't as in control as we thought.

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The first thing that popped into my head was what a fine target all those ships would make. 

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2 minutes ago, Cinnamon said:

The first thing that popped into my head was what a fine target all those ships would make. 

Yep. Just sitting there, fish in a barrel...

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2 minutes ago, counterintelligence said:

Another Pearl Harbor?

Very good possibility. Think of what a giant bomb that would make.

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Venezuela Sees Crude in Mid-$20s If OPEC Doesn't Act

 

  • OPEC member seeks `equilibrium price' of $88 a barrel
  • Saudis, Qatar to consider proposal, Venezuelan minister says

 

Oil prices may drop to as low as the mid-$20s a barrel unless OPEC takes action to stabilize the market, Venezuelan Oil Minister Eulogio Del Pino said.

Venezuela is urging the Organization of Petroleum Exporting Countries to adopt an “equilibrium price” that covers the cost of new investment in production capacity, Del Pino told reporters Sunday in Tehran. Saudi Arabia and Qatar are considering his country’s proposal for an equilibrium price at $88 a barrel, he said.

OPEC ministers plan to meet on Dec. 4 to assess the producer group’s output policy amid a global supply glut that has pushed down crude prices by 44 percent in the last 12 months. OPEC supplies about 40 percent of the world’s production and has exceeded its official output ceiling of 30 million barrels a day for 17 months as it defends its share of the market. Benchmark Brent crude settled 48 cents higher at $44.66 a barrel in London on Friday.

 

“We cannot allow that the market continue controlling the price,” Del Pino said. “The principles of OPEC were to act on the price of the crude oil, and we need to go back to the principles of OPEC.”

<snip>

http://www.bloomberg.com/news/articles/2015-11-22/venezuela-sees-crude-in-mid-20s-if-opec-doesn-t-take-action

lol @ the highlighted in red, isn't that what's wrong with everything? The market is not being allowed to dictate, so everything is artificially fixed, propped up or the numbers are manipulated?

 

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1 minute ago, Cinnamon said:

“We cannot allow that the market continue controlling the price,” Del Pino said. “The principles of OPEC were to act on the price of the crude oil, and we need to go back to the principles of OPEC.”

<snip>

http://www.bloomberg.com/news/articles/2015-11-22/venezuela-sees-crude-in-mid-20s-if-opec-doesn-t-take-action

lol @ the highlighted in red, isn't that what's wrong with everything? The market is not being allowed to dictate, so everything is artificially fixed, propped up or the numbers are manipulated?

It sure is. That pesky market, with people doing whatever they please instead of the dictates of the overlords!

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Here in NE Iowa USA gas is under 2 bucks a gal today November 22 2015 .   Just saying . $ 1.88 per gal .

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When the petrodollar goes down, the economy recovers, but the oil business goes down.  When the petrodollar goes up, the economy slows down, but the oil business is gushing. 

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After US drillers are too far gone to recover, they'll jack the prices up and there will be hell to pay. And no Keystone Pipeline to supply the country. 

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