[Marxism] Oil prices fall to $39/bbl

nada dwaltersMIA at gmail.com
Fri Dec 19 10:53:09 MST 2008


So, my 2 petro-dollars on one of the questions. From the horse's mouth, 
so to speak:

 From Venezuela Analysis...

"The president of the Permanent Energy Commission of the Venezuelan 
National Assembly, Angel Rodriguez, denied that the cuts would cost 
Venezuela financially, and said that an uncontrollable drop in oil 
prices would be the biggest threat to the nation."

and

"Oil Minister Ramirez, in an interview with the newspaper El Universal, 
wouldn’t rule out an adjustment to the numbers used to figure the 
national budget, which is based on US$60 per barrel, but said first they 
will wait and see how the markets react to the OPEC decision."

Clearly then they are eating into the their foreign reserves, which they 
do have a lot of. Obviously they are very worried about this as should 
be clear to any casual observer of countries that depend on selling oil 
abroad for large parts of their budget.

"Everyone", meaning economists of all sort would agree, for a huge host 
of reasons, that Ramirez's floor of US$60/bbl makes sense, for 
consumers, industry, countries like Mexico and Venezuela, etc.

David

Dr. Issac Assimov: " The most exciting phrase to hear in science, the 
one that heralds new discoveries, is not 'Eureka!' but 'That's funny ...' "




More information about the Marxism mailing list