One thing that Russia does not like is the exceedingly high oil price that is happening lately. They like that 80 to 100 dollar range. But it seems to be happening whether we have a lack of oil or not. I hear reports of oil just sitting in tankers floating on the ocean waiting to be unloaded and the price sky rockets at the drop of a pin. But for every tanker that is full of oil, you have a rumor to make its cargo worth more. Now with a strong worded warning from a Merrill Lynch analyst. Russia cringes at the resultant repercussions of what the global economy might do…
Crude price expected to jump to 150 dollars a barrel:
The reported fire at the Libyan oil storage facility may raise the price of oil to 150 dollars a barrel, warn experts at the Merrill Lynch Investment bank. Merrill Lynch analysts fear that “If the price of crude exceeds the historic mark of 150 dollars per barrel and remains permanent, the risk of a global recession would become real”. Some experts share the prediction and they calculate that an increase of 10 dollars a barrel on the average per year, would consume 0.5 per cent of the increase in the global economy. Listen to what Yaroslav Lisovolik, Chief Economist of Deutsche bank in Russia had to say on the point.
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Source: Voice of Russia.
I hear the words, “Why can it (oil) not just stay stable in price?” That is a good question and I ask it also. It really makes no sense to me. When you have plenty it should be reasonably priced. I always thought it was “supply and demand”. But sometimes it seems that with somethings in the world that does not hold true…
Maybe we need a revamp of the oil pricing system…
Windows to Russia!
- UPDATE 1-Risk Libyan oil down for months – BoA Merrill Lynch (reuters.com)
- Higher oil prices threaten global economy (seattletimes.nwsource.com)
- Recession a ‘real risk’ if oil tops $150: B. of A. (marketwatch.com)
- Higher oil prices threaten global economy (sfgate.com)
- Brent crude slips under $116 (theglobeandmail.com)
- BUY OR SELL-Oil on the boil: a two-edged sword for crude carriers (reuters.com)
- World Economy Can Survive Surge in Oil Prices for Now, IMF Says (businessweek.com)
- Libya and the Oil Troubles… (windowstorussia.com)
- Russia and British Petroleum… (windowstorussia.com)
- The Nabucco Death Rattles are Being Heard… (windowstorussia.com)
- The West is in a Panic over Libya or How Libya Rocked the Oil World… (windowstorussia.com)
- Coffee and a Rebel or a Terrorist… (windowstorussia.com)