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
