Iranian leader says oil hasn't reached true value

[ECH1969]

President Mahmoud Ahmadinejad said Wednesday that the crude oil prices now at record levels still were below their “real value,” state-run Tehran radio reported.

“The global oil price has not reached its real value yet. The products derived from crude oil are sold at prices dozens of times higher than those charged by oil-producing countries,” the radio quoted Ahmadinejad as saying.

George Orwel, an analyst at the New York-based Petroleum Intelligence Weekly, said he believed Ahmadinejad was not serious but was playing the oil card to resist pressure over his nuclear program.

“They are using the oil as a political football, every time there’s an issue with Iran, the oil market freaks out,” he said in a telephone interview.

http://www.msnbc.msn.com/id/12390227/

[Psephos]

1. He sounds like Exxon to me

Greedy mo-fo.

Meanwhile, poor people everywhere are shelling out more $$$ for the basics.

Peace.

[Gato Moteado]

2. george orwel?

that's interesting

[Zynx]

4. I didn't realize that at first. It was interesting, wasn't it?

[Warpy]

3. The oil guy I know is now saying $100/bbl isn't out of the question

and just two months ago he was smugly insisting it would drop to $40/bbl within the next couple of years. I pointed out to him that the Chinese and Indians were hardly likely to abandon their cars and motorbikes and return to pedicabs and bicycles, no matter how bad their economies got in the inevitable "correction" and that Joe Sixpack was NOT going to give up his penis extender here in the US (although a few have!) and that those two things alone would keep demand high enough that $40/bbl was a crack pipe dream.

It will be interesting to see what the price "settles" to. My guess is that the $75/bbl price is about right, although we'll exceed it from time to time when Stupid shoots his mouth off about Iran.

In any case, I'm enjoying the break from all the monster trucks, SUVs and momvans on the road. Most of the new cars around here are smaller, midsized sedans and points south. Car lots are choked with new and used SUVs and monster trucks. Maybe those "image" trucks will finally get a real working life on the local farms and ranches if the price drops at all.

[Ms. Clio]

5. Osama Bin Laden thinks oil should be $100 per barrel

Looks like he'll soon have another item to cross off his wish list.