Venezuelan president Hugo Chávez is poised to launch a bid to transform the global politics of oil by seeking a deal with consumer countries which would lock in a price of $50 a barrel. A long-term agreement at that price could allow Venezuela to count its huge deposits of heavy crude as part of its official reserves, which Caracas says would give it more oil than Saudi Arabia. "We have the largest oil reserves in the world, we have oil for 200 years." Mr Chávez told the BBC's Newsnight programme in an interview to be broadcast tonight. "$50 a barrel - that's a fair price, not a high price."
A long-term agreement at that price could allow Venezuela to count its huge deposits of heavy crude as part of its official reserves, which Caracas says would give it more oil than Saudi Arabia. "We have the largest oil reserves in the world, we have oil for 200 years." Mr Chávez told the BBC's Newsnight programme in an interview to be broadcast tonight. "$50 a barrel - that's a fair price, not a high price."
Chavez wants a floor on oil prices at 50$ to make certain that investments in his heavy oil reserves can be economic.
The Iranians say that won't let oil prices go down below 50$.
It's just not clear to me what the WH wants for oil prices. I nkow what they want for oil itself, but as for prices... In the long run, we're all dead. John Maynard Keynes
I doubt that he will mind if it goes up more. In the long run, we're all dead. John Maynard Keynes
At this point, a hard $50 floor would have value for the producers - it guarantees them a minimum (and already pretty high) level of income, and thus predictability in their budget, which would allow them to make nice promises to their population and actually fulfill them. And guaranteeing a floor does not precluse higher prices.
And of course, Chavez is making this offer safe in the knowledge that it will never be accepted by the West, so his "generosity" costs him nothing. In the long run, we're all dead. John Maynard Keynes
For instance, Sweden has said they want to be oil-free within 20 years. It would make sense for them to lock in supplies for the intervening 20 years. Most economists teach a theoretical framework that has been shown to be fundamentally useless. -- James K. Galbraith
It simply has not been done yet. In the long run, we're all dead. John Maynard Keynes
So Iran has our attention and can push the price where it likes and nothng Chavez says about the future will change that present. keep to the Fen Causeway
Expect a mid-october "suprise" invasion. Early enough to affect the polls with patriotic fervour, late enough that it cannot possibly start going wrong before the polls close. keep to the Fen Causeway
Which will take about as long as it's taking to pacify Iraq no doubt. keep to the Fen Causeway
Don't forget that Iran has medium range missiles, and would be perfectly capable of doing remote damage to US land and sea forces in Iraq, Turkey and other areas in the Middle East if it decides to get defensive. It would take an incredibly successful and coordinated initial barrage from the US to remove that capability. And that's not likely to happen either.
I think it's more likely that this whole pantomime is yet another cynical move to drive up prices. Bush probably doesn't much care that it will ruin the US as long as his Texas and Saudi buddies are getting richer. He really does seem to be that stupid, disconnected and cynical.
Probably a stupid question. I just don't understand what releasing strategic gasoline reserve means, but would like to learn. Atlantic Review - A press digest on transatlantic affairs edited by three German Fulbright Alumni
The US has a strategic crude oil reserve, which Bush filled up to capacity for the first time in many years at some point in his first term - must have been in 2002, but I don't remember.
The Village Voice: Pumping Us Dry (September 2nd 2005)
Katrina tragedy is an absolutely perfect storm for oil companies ... If the companies can't increase their refined products, they could end up turning not to the petroleum reserve but to the European Union. While the U.S. keeps a supply of crude oil in its strategic reserve, the Europeans maintain a stock of gasoline as well as crude. There has been speculation that in a really tight situation, the EU might be called on to export some of that supply to the U.S.
Don't know if it is the same in the rest of EU.
I didn't know gasoline was traded internationally as well. Atlantic Review - A press digest on transatlantic affairs edited by three German Fulbright Alumni
