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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsCrude Oil at 28-Month High on Heightened Syria Tensions = Saudi's Profits Enormous
The Saudi Arabian investment in the Syria conflict is paying MASSIVE dividends daily.
Crude Oil Settles at 28-Month High on Heightened Syria Tensions
http://online.wsj.com/article/SB10001424127887324577304579058350801633872.html
Crude-oil prices climbed 2% Friday to a 28-month high amid heightened anxieties over the U.S. and Russian impasse over Syria.
At the conclusion of the summit of the Group of 20 industrial and developing nations, U.S. President Barack Obama said he would make his case in a televised address Tuesday on why he supports strikes against Syria in response to allegations the government there recently used chemical weapons against its people.
Russian President Vladimir Putin, in a separate news conference, blamed Syrian rebels for the chemical attacks and highlighted the rift between the two leaders. "I don't agree with [Mr. Obama's] arguments, and he doesn't agree with mine," Mr. Putin said. He pledged to continue supplying weapons and humanitarian aid to Syria.
"Putin's comments really ratcheted things up," said Andy Lebow, senior vice president of energy futures at Jefferies Bache LLC in New York. .......
NOTE: The price is back above the amount that contributed to the global finacial crisis.
The Syrian conflict may result in another global economic collapse. Meanwhile, the Saudis are making money like never before simply by investing a small amount of money in the Syria conflict.
Not to mention, look at the chart and notice how much the Saudis profited from the Saudi terrorists striking the US on 9/11 and Big Oil Bush's consequent actions in the Middle East.
CincyDem
(6,407 posts)Sunlei
(22,651 posts)The Saudis should also hire any gunrunners profiteers like they hired Blackwater to get rid of any protestors in Saudi Arabia and Dubai.
The USA should not spend a single dime on wars only on humanitarian issues/aid.
We do NOT need their oil, those days are over. There is plenty of crude oil, more than enough to meet domestic needs of quality crude in many other countries other than middle east.
We shouldn't be letting oil Corps price-set anymore.
Coyotl
(15,262 posts)Check the chart. You are very wrong.
2011 = 5,651 production vs. 18,949 consumption per day!
1980 = 8,597 vs. 17,056
Sunlei
(22,651 posts)the new price.
Tough crap for investors in middle east oil. There is plenty of quality crude elsewhere in the world. It gushes out of the ground in places like Africa.
Even the state of Utah has more shale oil under it (untouched) than the entire of Saudi Arabia.
The world doesn't have to allow the middle east and the huge investors like bush family to PRICE SET anymore.
Coyotl
(15,262 posts)Sunlei
(22,651 posts)Coyotl
(15,262 posts)Sunlei
(22,651 posts)selling gasoline for 50 cents less.. if there is no price setting.
Strelnikov_
(7,772 posts)The Persian Gulf represents nearly 40% of the worlds oil export market . . . the part that 'tops off the tank' so to speak.
Since oil is a fungible and relatively price inelastic commodity, any shortfall, either real or perceived, will result in a massive price spike.
The energy crises of 70's were the result of less than a 5% shortfall.
You are correct that we need to get out of the imported energy game. Problem is, it takes time, and due to incompetent management, it looks like we are on shock path to energy reconfiguration.
Like waiting to change until the heart attack happens . . . some make it . . . some don't.
Sunlei
(22,651 posts)hospitals gone, tourist industry gone, oil production down to almost nothing (what is it now 1 billion revenue a year?and most crude kept for domestic use) thousands of buildings smashed to rubble, 2 million citizens in refugee camps.<< the lucky ones who managed to flee over the border.
The Saudibush et all price setting of crude oil, just doesn't matter with Syria. people probably could run in and steal Syrias crude by now. pay off whatever guards are there.
Coyotl
(15,262 posts)Why not admit you are flinging total BS when the obvious facts are pointed out?
Sunlei
(22,651 posts)Besides Assad has ruined his economy.
1 billion in syria oil revenue loss shouldn't change the price of crude at all. The only BS is the price setting of crude and domestic gasoline over Syria.
Coyotl
(15,262 posts)Sunlei
(22,651 posts)Strelnikov_
(7,772 posts)And if KSA is destabilized, Russia is the leading exporter of $300/bbl oil.
Putin is playing both sides.
Putin has long been nursing ambitions of using Russia's vast oil and gas supplies as an instrument of power. In the mid '90s, after 15 years in the KGB, Putin went back to school, attending the St. Petersburg Mining Institute. He wrote a dissertation titled "Toward a Russian Transnational Energy Company." The topic: how to use energy resources for grand strategic planning.
In the early stages of pro-market reforms in Russia the state temporarily lost strategic control over the mineral resources industry. This led to the stagnation and disintegration of the geological sector built over many decades
. However, today the market euphoria of the early years of economic reform is gradually giving room to a more balanced approach that... recognises the need for a regulatory role of the state.
- Vladimir Putin, Toward a Russian Transnational Energy Company., PhD dissertation, St. Petersburg Mining Institute
The Rouble must become a more widespread means of international transactions. To this end, we need to open a stock exchange in Russia to trade in oil, gas, and other goods to be paid for in Roubles. Our goods are traded on global markets. Why are not they traded in Russia?
President Vladimir Putin, Speaking before the full Russian parliament, Cabinet and international reporters, May 2006
Russia has found the Achilles heel of the US colossus. In concert with its oil-producing partners and the rising powerhouse economies of the East, Russia is altering the foundations of the current US-led liberal global oil-market order, insidiously working to undermine its US-centric nature and slanting it toward serving first and foremost the energy-security needs and the geopolitical aspirations of the rising East
- W. Joseph Stroupe, author, Russian Rubicon: Impending Checkmate of the West, as quoted in the Asia Times, November 22, 2006
From the Russian perspective, the Saudi role and OPEC model have benefited the United States, which can pressure Saudi Arabia into opening the spigot to deal with supply emergencies; the US also pressures other oil producers, such as Libya, Iraq, Iran, Venezuela, and Indonesia, by military methods, diplomacy, and economic sanctions. In the Russian alternative, the US will be far less influential, and have fewer levers, commercial or military, to effect pressure on the energy suppliers. Russian arms and defense-industry partnerships are on offer to relatively weak, intervention-prone energy producers in Africa and Latin America to offset US pressure.
In the OPEC model, the benchmark is Brent crude, priced in US dollars. In the Russian model, the discount and disadvantage between the Brent and Urals benchmarks will be reduced, and pricing will evolve toward a currency basket, including the ruble. In the OPEC model, suppliers hold much of their cash and government securities in US controlled institutions. In the Russian model, cash is held in the form of a currency basket; conversion from cash is sought into non-US assets, particularly in the European market.
In the OPEC model, investment in new energy reserves should be open to, and may be controlled by, US corporations. In the Russian model, strategic reserves should be controlled by national companies, state-controlled champions, or joint ventures in which Russian interests are in the majority. The Russian model also extends to energy-convertible coal, uranium, and other mineral resources. Through negotiations for Russian accession to the World Trade Organization (WTO), the US, Australia, Canada and other resource-exporting states have sought to gain unlimited access to search and development of Russian minable resources.
The Russian model rejects this, and instead assigns priority and equity control of domestic resources to national resource companies. The model proposes tradeoffs and partnerships in resource exploitation in third countries, especially the developing states. The US-backed OPEC model assigns international priority to the Arab states. The Russian model assigns priority to the Central Asian alliance, including China, India, and Iran; secondarily to Latin America and ultimately Africa.
- John Helmer, Russian energy model challenges OPEC, Asia Times, July 18, 2006,
Sunlei
(22,651 posts)It's in Putins' and investors best interest to keep the prices of those resources as high as possible. Even if it takes seeding, WW3 somewhere else in the world.
Ichingcarpenter
(36,988 posts)when the price jumps.
Chaos and war is good for business