For a Billionaire, The Guy Has NO CONCEPT Of How Business Works.
Time for some fine examples of the true stupidity that is out there. Just like the idiot kid who takes over the family business, royalty is no different. Leadership based on heritage doesn't give the title to the most qulaified or smartest, but the first born boy. That's why I'm convinced that Prince Charles is a retard. Well, maybe he's just a little slow. Or just a Momma's Boy...
Anyway, here is my point for today. Saudi Arabian leader King Abdullah (not to be confused with Jordan's King Abdullah) told a Kuwaiti newspaper that oil is too cheap right now. He feels that the $54 a barrel that it's going for should be about $20 higher. Well, o course he's goin gto say that. Here is my question: Why weren't you bitching that oil was overpriced six months ago when it was $147 a barrel, Dickwad ???
Seriously, no one wants to hear a guy who is screwing half of the planet for years complain that he's losing money - and he's not even losing yet. Estimates are that Saudi Arabia has a total cost of $50 a barrel for oil, so they're still making 10% profit - which is pretty good for most businesses. Abdullah might be complaining for some of his OPEC cohorts like Iran and Venezuela, who use oil to buy off unhappy people in their own countries. They're costs are more in the $90 per barrel range,which means they usually lose money to produce oil. Overhead , overhead.
Maybe OPEC, which is basically a cabal under the name of cartel, is not real familiar with economic theory, so under the assumption that King Abdullah reads SC6, we'll explain it quickly. Oil and all commodities are negotiated under the market theory of SUPPLY AND DEMAND . If we aren't willing to pay $90, $100 or $150 per barrel, then too bad. If you want to sell it for less, we'll take it. But we don't want it at that price anymore, if ever. Hope you enjoyed the nice influx of cash that we gave you there. It's over.
Sure, OPEC will try to cut production to jack the price up, but to get a $10 bump in price , they would need to cut production by 3 million barrels a day. That isn't happening, because OPEC is as shaky a cartel as there is. Drug dealers and the Mafia keep promises better than OPEC does. They screwed, and it feels kinda nice, doesn't it?
King Abdullah is going to have to find a way to get by somehow....
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7 comments:
there's a special place in hell for him too
I'm happy to announce that gas prices have made it down to $1.75 yesterday in NC brother! Keep rubbing your crystal ball!
You should gas up down here, it's 1.59 or less everywhere. Guess that extra .16 a gallon pays for all those nice highways you have in NC....
Unfortunately, I think the bottom has hit, expect a .10 bump up come Christmas time.
1.39 in Houston
We hear Hugo Chavez has an issue or two with declining oil prices...
I will be down to see Chavez in January will ask him
Tell him to quit sucking on the cocoa leaves - it makes him grind his teeth..
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