|
Chavez demands an emergency OPEC meeting to discuss the drop in oil prices
|
View this Thread in Original format
| Shakka |
| Funny, I thought the conspiracy was that Dubya was behind high oil prices so that he could enrich all of his buddies in the oil patch, while Chavez was such a friend of the people. Methinks Hugo and Mahmoud may have overplayed their hands. We shall see. |
|
|
| Q5echo |
| he's too self absorbed (or mildly retarded) to even pick up on the irony. |
|
|
| Magnetonium |
You guys don't get it, do you? He is not raising the oil prices for his people - in fact, last time I checked, Venezuela has one of the world's LOWEST prices on petrolum products INSIDE the country. Its the economic side of it, Chavez doesn't want selling the oil on international market for not a single penny less to fund his regime and fill his pockets. Kapish?
And he's not the only one concerned about this. Reember few months ago I posted a link on how OPEC lowered its production by one million barrels or so a day to stop the drop of petroleum prices? |
|
|
| Shakka |
| quote: | Originally posted by Magnetonium
You guys don't get it, do you? He is not raising the oil prices for his people - in fact, last time I checked, Venezuela has one of the world's LOWEST prices on petrolum products INSIDE the country. Its the economic side of it, Chavez doesn't want selling the oil on international market for not a single penny less to fund his regime and fill his pockets. Kapish?
And he's not the only one concerned about this. Reember few months ago I posted a link on how OPEC lowered its production by one million barrels or so a day to stop the drop of petroleum prices? |
I certainly understand the basic economic premise behind what you're saying, but you're argument is far too basic and shortsighted as it completely overlooks the geopolitical aspect. Venezuela certainly has an extremely low cost relative to others (though certainly not lower than the Saudis). I think this has more to do with the Saudis exerting their power over Iran and Russia who, while they have access to cheap oil, cannot produce it as cheaply as Saudi Arabia. Didja happen to notice the other day that the Saudis rejected the notion of lowering production? It seems to me that they would be willing to to bear a little short-term pain in the form of lower prices in order to regain the upper hand in the region. Lower oil prices are far more detrimental to poverty stricken nations like Iran/Venezuela than they are to a much more wealthy nation like Saudi Arabia. Gas just hit $1.99/gallon here--and I think it's still headed lower.
Sorry pal, I think you don't totally "get it." No amount of CAPITAL LETTERS in your post will make you more or less correct. |
|
|
| LazFX |
| quote: | Originally posted by Shakka
Sorry pal, I think you don't totally "get it." No amount of CAPITAL LETTERS in your post will make you more or less correct. |
+100 |
|
|
| Fir3start3r |
| quote: | Originally posted by Magnetonium
You guys don't get it, do you? He is not raising the oil prices for his people - in fact, last time I checked, Venezuela has one of the world's LOWEST prices on petrolum products INSIDE the country. |
Last time I checked, his oil prices inside his own country are HEAVILY SUBSIDIZED. Kapish?
wouldn't be a good socialist dictator if he didn't make the people very reliant on the government now would he? ;-) |
|
|
| Magnetonium |
| quote: | Originally posted by Fir3start3r
Last time I checked, his oil prices inside his own country are HEAVILY SUBSIDIZED. Kapish?
wouldn't be a good socialist dictator if he didn't make the people very reliant on the government now would he? ;-) |
Holly man. Chavez places petroleum prices for low prices inside the country, subsidies if you want to call it. But on the market, when signing deals, exports, he charges the market price. And he wants to keep it there. Its his oil. I think he's doing a smart thing and he should lower the production again so that maybe idiots in Washington will stop funding the communist regime by buying the oil and instead go to other directions for energy like solar power, electromagnetics , wind power, electric cars and other stuff. We're relied on it too far as it is. Those dictatorships around the world have been living off our democratic bucks for too long.
There could be many reasons for Saudis not wanting to make even bigger profits by dropping production. First, is because they are very nice people, which is not true. Secondly, Saudis are America's allies so some pressure could do the trick. Thirdly, they are making loads of money right now, and considering that Saudis have a quarter of world's oil, they like where they sit right now.
As for other countries that have less oil and are trying hard to make as much money as Saudis do, they evidently cant do it the same way. Pretty simple when you look at the big picture, isnt it? |
|
|
| Q5echo |
| quote: | Originally posted by Magnetonium
You guys don't get it, do you? He is not raising the oil prices for his people - in fact, last time I checked, Venezuela has one of the world's LOWEST prices on petrolum products INSIDE the country. |
of course we get it. we understand completely why he would want oil prices to stay above what the market can sustain. that has nothing to do about what prices he sells at domestically.
i heard it costs him something like 4 times as much to refine his crude compared to the Arab States. he's prolly sweating bullets when the price falls below $40/50bbl
| quote: | | And he's not the only one concerned about this. Reember few months ago I posted a link on how OPEC lowered its production by one million barrels or so a day to stop the drop of petroleum prices?[/COLOR] |
so whats your opinion on why OPEC chooses to keep the market flooded? |
|
|
| Magnetonium |
| quote: | Originally posted by Q5echo
of course we get it. we understand completely why he would want oil prices to stay above what the market can sustain. that has nothing to do about what prices he sells at domestically.
i heard it costs him something like 4 times as much to refine his crude compared to the Arab States. he's prolly sweating bullets when the price falls below $40/50bbl
so whats your opinion on why OPEC chooses to keep the market flooded? |
The demand for oil is still high.
OPEC, like any business, wants to continue growing their profits. But they dont want to look evil trying to force the price to go up, I guess. They know that oil price drops are normal, as prices cant go up forever. Their analysists know that probably by the time its summer oil prices will be back to "normal". So the biggest petroleum exporters like Saudi Arabia have many so much money after all this madness, so for them its not necessary to manipulate the market until a critical mark is reached.
But for Chavez, who has big goals in mind and he's subsidizing Cuba, remember, he needs every petrodollar he can squeeze, or else his communist dream might falter. And he's worried. And he should be. He is not producing oil is numbers big enough to reap the profits like the Saudis, Qatar and Kuwait does. Russia maKes good money on oil as well, but they dont care because its the natural gas thats their primary muscle. |
|
|
| Q5echo |
| quote: | Originally posted by Magnetonium
I think he's doing a smart thing and he should lower the production again |
why in the hell would he lower his output? OPEC will sell at whatever the market wants no matter what he pays for it. he needs output if he's gonna stay with OPEC.
| quote: | | so that maybe idiots in Washington will stop funding the communist regime by buying the oil and instead go to other directions for energy like solar power, electromagnetics , wind power, electric cars and other stuff. We're relied on it too far as it is. Those dictatorships around the world have been living off our democratic bucks for too long. |
the idiots in Washington don't buy oil, our free market does. they'll just keep buying our oil from the Communist regime in Canada
| quote: | | As for other countries that have less oil and are trying hard to make as much money as Saudis do, they evidently cant do it the same way. Pretty simple when you look at the big picture, isnt it? |
thank you captain obvious. |
|
|
| Magnetonium |
| quote: | Originally posted by Q5echo
why in the hell would he lower his output? OPEC will sell at whatever the market wants no matter what he pays for it. he needs output if he's gonna stay with OPEC.
the idiots in Washington don't buy oil, our free market does. they'll just keep buying our oil from the Communist regime in Canada
|
But still, our democracy dollars are paying for the communist regime. You know what I am talking about, you dont have to pick on my word selection for Christ's sake. If we didnt buy a cent of Chavez' oil, their communist regime would go up in smoke right now, along with Cuba and others there.
Oh, and yeah, OPEC runs the show, so Chavez will have hard time convincing Saudis and Kuwaitis for that matter, because they're pro-American and don't give a rats ass. But either way, Chavez is worried. |
|
|
| Q5echo |
| quote: | Originally posted by Magnetonium
[COLOR=FF7F50]
The demand for oil is still high.
OPEC, like any business, wants to continue growing their profits. But they dont want to look evil trying to force the price to go up, I guess. They know that oil price drops are normal, as prices cant go up forever. Their analysists know that probably by the time its summer oil prices will be back to "normal". So the biggest petroleum exporters like Saudi Arabia have many so much money after all this madness, so for them its not necessary to manipulate the market until a critical mark is reached. |
i have a different opinion, but thats cool. |
|
|
|
|
