Reverse oil shock

Post #298,190 by malraux 10/21/08 10:29:56 AM Reply	Reverse oil shock And what it means to our buddies in Russia, Iran, and Venezuela: http://www.iht.com/articles/2008/10/21/news/21petro.php "As the price of oil roared to ever higher levels in recent years, the leaders of Venezuela, Iran and Russia muscled their way onto the world stage, using checkbook diplomacy and, on occasion, intimidation. Now, plummeting oil prices are raising questions about whether the countries can sustain their spending Â and their bids to challenge United States hegemony. For all three nations, oil money was a means to an ideological end." Regards, -scott <i>Welcome to Rivendell, Mr. Anderson.</i>
Post #298,228 by jay 10/21/08 1:11:04 PM Reply	Not that much It will take some cutting back, but not that much. It isn't like oil is becoming cheap, and OPEC will take steps to insure that doesn't happen. They have gotten used to $80 a barrel and don't want it to go higher or lower. And while there isn't much they can do about it shooting up higher, they can easily keep it from going lower by cutting production. Chavez is really the only one with a big problem. He has used high oil prices to finance a lot of short term international projects rather then working on the fundamental infrastructure and economic problems of the country. Jay
Post #298,229 by kj3n 10/21/08 1:33:59 PM Reply	Re: Not that much "....rather then working on the fundamental infrastructure and economic problems of the country." Sounds like another country I know.... Hmmm.....
Post #298,265 by jay 10/22/08 1:35:24 PM Reply	The difference is key Chavez wasted money he actually had. We borrowed money so we could spend it on short term international projects. Jay
Post #298,231 by boxley 10/21/08 2:25:04 PM Reply	the $80 mark is what $50 used to be the new break even where the dollar is, dips into the 70 range and if the dollar weakens again it will be a lot worse for them. What is screwing chavez is the long term fixed $50 contracts he has with the neighbors, apparently they didnt factor in a floating dollar. if lemmy and god had a wrestling match who would win?

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