Quote:
Originally Posted by J.Belknap
Curious how the middle east stability affects pricing to a greater degree than the craziness that has been going on for some time now in Mexico, a country where we purchase a higher volume of oil?
It doesn't make sense, someone please enlighten me.
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J...
No Xpert...just off the top of my #2 buzz cut melon:
-Libya oil, and lots of other 'mid east/African' countries goes to Europa, and into the world wide 'pot'. Speculators love 'trouble' and 'tension'.
-Even though the drug crazies have been murdering anyone they feel like, the oil from MX keeps coming, for now.
-Force the speculators to take delivery: oil will be $60 to $70 bbl max in less than a week.
-the short interest on oil, is miniscule; the longs, (all speculative), are betting their plaid vests on $120, or higher. With no 'delivery/possession', zero down unlike most 'options', no problem. Equals forced higher, and higher prices.
All this blip does is reopen a festering wound, drag down econ recovery, and make some geopolitical regions more wealthy, based on an over priced commodity that happens to be handily available under their sands.
The world, and esp the US, is not running out to buy electric cars or Priuses tomorrow. And, Solar/alt techs keep laying off and whistling in the dark, due to utter lack of interest, private or public or, governmental.
Welcome to the continuing saga of chaos.
GL, mD