[Marxism] Oil prices fall to $39/bbl
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."
"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.
Dr. Issac Assimov: " The most exciting phrase to hear in science, the
one that heralds new discoveries, is not 'Eureka!' but 'That's funny ...' "
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