Iran and Venezuela back oil cuts

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Iran and Venezuela back oil cuts

2007-01-13 18:01:17

sergeriver: Cowboy from Hell; +1,928|7183|Argentina

The presidents of Venezuela and Iran have called for a cut in oil production by the members of the Opec oil cartel. Speaking in Caracas, Hugo Chavez and Mahmoud Ahmadinejad said they wanted to co-ordinate the group to reduce the amount of crude oil on the market. Mr Ahmadinejad is visiting Venezuela at the start of a tour aimed at boosting ties with Latin America. Mr Chavez welcomed Mr Ahmadinejad to Caracas, calling him a "fighter for just causes, to a revolutionary and a brother".

I hate these two assholes.

Last edited by sergeriver (2007-01-13 18:02:59)

2007-01-13 18:13:29

TeamZephyr: Maintaining My Rage Since 1975; +124|6955|Hillside, Melbourne, Australia

Cut oil production???

I'm no economic genius but wouldn't that leave less oil profits for them? It means that now Mr Chavez is just hating the USA for the sake of hating the USA.

2007-01-13 18:18:10

evilcartman99: The Octagon; +18|6838|da ville, va

He's always done that

2007-01-13 19:03:56

Masques: Black Panzer Party; +184|7148|Eastern PA

TeamZephyr wrote:
Cut oil production???

I'm no economic genius but wouldn't that leave less oil profits for them? It means that now Mr Chavez is just hating the USA for the sake of hating the USA.

Reducing the supply will drive up prices and thus revenues, especially since alternatives have not be embraced. Since people have to buy petroleum (not just for fuel, but for a host of other products) they're sure to get their profits.

2007-01-13 19:07:03

herrr_smity: Member; +156|7053|space command ur anus

TeamZephyr wrote:
Cut oil production???

I'm no economic genius but wouldn't that leave less oil profits for them? It means that now Mr Chavez is just hating the USA for the sake of hating the USA.

nope it will mean that the price of crude oil goes up, the OPEC countries will probably bust production to compensate.

Last edited by herrr_smity (2007-01-13 19:09:10)

2007-01-13 21:11:41

jonsimon: Member; +224|6920

Ouch, that's the kind of supply shock that sent the US into the Great Depression.

Edit: Assuming of course they are wrong and the world is not oversupplied. If supply is above equillibrium it won't affect anything.

Last edited by jonsimon (2007-01-13 21:13:24)

2007-01-14 04:12:32

BVC: Member; +325|7121

A cut in output will affect every oil-consuming nation. The price will go up, meaning profits will too. Its like squeezing more juice out of a lemon, really.

Speaking of lemons, the californian lemons I bought the other day will go up in price now thanks to the increased fuel costs associated with hauling them across the pacific, thus negating the effects of the cheap illegal mexican labour that picked them. Thanks hugo, you're costing me 3 cents/kg more you shit, now I have to get off my arse and pick the ones from the tree in my back yard!

2007-01-14 04:52:54

JahManRed: wank; +646|7053|IRELAND

If you think of world oil politics as a poker game. Iran and Venezuela are holding back some of their large stacks of chips, as a few of the players at the table have very few chips but aces hanging out of their sleeves. They are waiting until they throw them Aces on the table before they start betting.

They haven't got massive globe trotting armies and military bases across the globe. They are trying to set themselves up for the world wide resource grab that is going to really kick in, in 20-30 years time. I don't blame them for this move. Its a good tactical move for both countries for the future.

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TeamZephyr wrote:

TeamZephyr wrote:

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