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Originally Posted by RICH1
Will this cause Inflation or Recession? Are the Saudis playing with fire? Will the United States finally support the Venezuelan Government and import oil? Will Powell follow other Countries and Stop raising interest rates?
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OIL is interesting. It is not just crude but the quality and the cost. There are places in the middle east where crude simply flows out of the ground. Far easer to know where it is and to extract it compared to stuff like fracking drilling under water etc.
The article I read was that the Saudis surprised us with a production cut. This makes me wonder. First we should know, expect what might etc.
Reading about oil. I took some time to read and my result was HUH? Prices go up immediately as if there is no product on hand on tankers etc. At a higher price the companies can use more expensive sources.
Venezuela oil? Venezuela went from being a prosperous nation to a financial basket case due to their government. Business decision? I think Venezuela has nationalized their oil industry. Imagine a company investing millions, billions and a country says it is ours we are taking it. Also the crude from Venezuela is low quality.
In terms of trying to understand oil. Price per barrel? How many gallons are in a barrel? If, I recall it is 42 gallons to a barrel left over from when oil was shipped in beer barrels. Product from a refined barrel is actually more than the gallons in the barrel-HUH THAT IS IMPOSSIBLE. In the US much oil comes from land owned by the government-we the people. We do not have any say in what we will charge for what we the people own. HUH? Our nation gets like one barrel out of every ???/ 14 or is it 16 extracted. HUH why do we pay to fill the national reserve?
My view of this. When things are deliberately made this complex you need to ask WHERE WE THE PEOPLE are being cheated.
I like many of us am retired. I used to drive a lot to earn my money. Does not effect me much. But, imagine driving over 1,000 miles a week at todays gas prices. Rising costs. You can bet prices will go up. Interest rate adjustment will not reduce the cost of gasoline or diesel. The US has more energy in coal than the entire middle east has in oil. We fortunately have many options.