Post by
Kherson on Dec 11, 2014 6:49pm
Opec, Russia and the U.S.
Food for thought folks. Who really wins in the political arena with long term low oil prices? I really don't see any winners...
We know that Russia and Iran are now experiencing massive problems due to low oil prices, but is it in the best interests of the West to allow this suffering to continue? I think not...
Keep in mind that those Middle-East Petro-dollars were being recycled back into our Western Capital Markets. Therefore, higher energy costs are revenue streams, both directly (taxes) and indirectly (investments) for Western governments. The last thing that the West wants now is deflation...
I will not be surprised to learn that OPEC and Russia are/were working behind the scenes to impliment production cuts with the full support of the U.S. If production cuts do occur within the next month, everyone wins...
Kherson
Comment by
Kherson on Dec 11, 2014 10:09pm
Sumcan2, you have presented a very valid point. OPEC is supposed to do what's best for all of it's members. Something else must be happening behind the scenes... Kherson
Comment by
maurizion on Dec 12, 2014 12:03am
The Saudi's will sacrifice a few Billion in the short term to cripple 30% of the high cost producers. They will make it all back and then some in the long term. They will teach them a lesson they won't forget for a long time.
Comment by
Kherson on Dec 12, 2014 9:33pm
Points well presented. I think we will see some U.S. government backed intervention in January. The oil industry is too important to allow it to be stressed for too long... Kherson