|
Chavez demands an emergency OPEC meeting to discuss the drop in oil prices (pg. 3)
|
View this Thread in Original format
| Q5echo |
| quote: | Originally posted by Magnetonium
Who is Russia bothering? You? |
no. the whole of Western Europe. |
|
|
| Magnetonium |
| quote: | Originally posted by Q5echo
no. the whole of Western Europe. |
Could you be a bit more precise? Who and why? |
|
|
| Q5echo |
| quote: | Originally posted by Magnetonium
Could you be a bit more precise? Who and why? |
Belarus. Russia didn't want to pay Belarus' royalties so they shut down the pipeline that feeds Part of Europe.
they hacked out a deal yesterday supposedly and the pipeline is back online? |
|
|
| Krypton |
Currently on the oil market, there is a huge surplus in supply because of the mild winter associated with the unusually warm winter of 2006-2007. OPEC might lower their production to bring the supply more in line with demand, and clear out the excess inventory.
There won't be an emergency meeting. |
|
|
| Magnetonium |
| quote: | Originally posted by Q5echo
Belarus. Russia didn't want to pay Belarus' royalties so they shut down the pipeline that feeds Part of Europe.
they hacked out a deal yesterday supposedly and the pipeline is back online? |
Star-traveller is right, you guys have no idea whats going on in Russia or Eastern Europe in general.
Where did you hear about this information from, out of your ass? Its Belarus that retaliated after Russia pressured it to accept a new deal on New Year's eve to pay 100 dollars for 1000 cubic metres of gas (which is 3-4 times lower than world price). Belarus all of a sudden decided without warning to charge a levy FOR TRANSIT OF OIL though Belarus, a rare and dumb move that is rarely practised aroound the world, which drew criticism from Transneft who refuses to pay 45 dollars per 1000 tons of oil that is not part of their contract.
Read:
http://www.guardian.co.uk/oil/story/0,,1985743,00.html
Belarus cuts off Russian pipeline in bitter gas war
Tom Parfitt in Moscow and agencies
Tuesday January 9, 2007
The Guardian
A bitter energy dispute jeopardised oil supplies to western Europe yesterday as Belarus struck out at neighbouring Russia by cutting off a vital transit pipeline crossing Belarussian territory.
The closure of the 2,500-mile Druzhba pipeline (druzhba means friendship in Belarussian), one of Europe's biggest, meant no Russian oil was being pumped along it to Germany, Poland or Ukraine.
The European Union demanded an "urgent and detailed" explanation from Moscow and Minsk, although it said there was no immediate concern over energy supplies because of large reserves in the affected countries. However, the dispute yet again raised fears in the EU about its growing reliance on energy supplies from Russia.
|
|
|
| Krypton |
It is a normal market reaction to cut production. Oil inventories are huge and the price of a barrel of oil is at new lows.
Once these production cuts are implemented, expect a rise in gas prices, and oil company stocks to become bullish (appreciate). |
|
|
| Fir3start3r |
Well, if the demand isn't there, then why produce?
Sounds pretty normal... |
|
|
| Q5echo |
| quote: | Originally posted by Magnetonium
Star-traveller is right, |
star-traveller was right. i was wrong. |
|
|
| Q5echo |
i lied to you? :rolleyes:
i asked you what your opinion was on why OPEC is currently left the market flooded, hence the decline in crude prices. don't get all puffy with me because i wanted your opinion.
...and just because one company cut supplies to certain Asian markets doesn't mean OPEC has cut production as a whole.
CNN and all the speculators can say what they want the market is still swollen. |
|
|
| Magnetonium |
| quote: | Originally posted by Q5echo
star-traveller was right. i was wrong. |
To tell you the truth, the information coming out of the eastern bloc is often very conflicting. If the gas pipe is shut off, much of the western media is quick to blame Russia for it, while not realizing that the pipeline is INSIDE Belarus. Thats why Russia right now is building a gas pipeline on the bottom of baltic sea to bypass these transit countries that are trying to push Russia around to make money on the pipelines. Its an old method actually. In medieval ages many vassals raised high taxes for using their bridges by merchants who had to cross it to get to the other side, for one example.
Russia is trying to be fair by going to the market prices, while Belarus controls that "bridge", at the same time refuses integration with Russia, is demanding the oil/gas prices to be like inside Russia (55 dollars for 1000 cubic meters). What Russia said to Belarus is this - you want cheap gas at the internal price - integrate with us or pay higher price when the contract expires January 1. Belarus refused to integrate. Russia subsidizes right now Belarussian economy at 5 billion dollars a year, effectively keeping their economy alive.
Soviet Union was one big family, and everyone paid the same price for gas. Now Belarus decided to leave and have its own family. Why should our [Russian] family pay for their family when they got themselves to feed? Belarus has their own independent life to build. Belarus and Russia can be friends, just like two families can be, but Russia should not pay for their family. You get the analogy?
Arrests of Berezovskiy and Gusinskiy, two oligarchs who made big money on illegal sale of government property at fire price, and corrupted the industry by laundering money, hiding taxes - they were made examples of (arguably when they turned against Putin). There's other oligarchs that got away because they are government's friends. But then again, every government has double standards. |
|
|
| Magnetonium |
| quote: | Originally posted by Q5echo
i lied to you? :rolleyes:
i asked you what your opinion was on why OPEC is currently left the market flooded, hence the decline in crude prices. don't get all puffy with me because i wanted your opinion.
...and just because one company cut supplies to certain Asian markets doesn't mean OPEC has cut production as a whole.
CNN and all the speculators can say what they want the market is still swollen. |
Wasnt the market flooded when the oil prices were rising and then hit the peak? It appears that only after the prices started falling did the production was altered to gradual decrease.
Before the prices were going up not because of production cuts, but because of instability in Iraq, Chavez, oil/gas disputes, terrorist attacks on oil installations in Saudi Arabia, etc. Its gone quiter since and the gas pipelines in Iraq are better secured it seems. |
|
|
|
|
