Friday, December 5, 2008

What crisis will the petro thugs gin up reinflate oil prices?

There are no easy answers for them. Melonhead and his poodle the Evil Dwarf are facing massive budget problems. So is Putin's poodle. No longer can they shower goodies upon the restless masses.

The Evil Dwarf:
Iran's President Mahmoud Ahmadinejad has for the first time admitted that the fall in world oil prices will affect the economic projects of his government, local media reported on Thursday.
Vladimir Putin's poodle Dmitry Medvedev is throwing the Russian hat into the ring with OPEC.
Russia will "coordinate" with OPEC nations to keep oil prices from being "too low or speculatively high," President Dmitry Medvedev said yesterday in Caracas.
Uh huh. Meanwhile, Melonhead has an expensive lifestyle to maintain:
The dynasty was saved and its members had come to give thanks - one shiny sports utility vehicle after another turned into Plaza Bolivar to deposit a Chávez in front of the church.

A brass band struck up Venezuela’s national anthem and throngs of supporters in red T-shirts reached out to touch the triumphant clan as it made its way to the front of the altar.

President Hugo Chávez was in the capital, Caracas, but his parents and five brothers were in Barinas this week to celebrate their continued rule over a rural fiefdom dubbed the cradle of the Bolivarian revolution.
But just as we saw during the early 1980s, this latest batch of petro thugs are all doomed. Saudi Arabia will continue to flood the markets with cheap crude.
"Saudi Arabia is playing ball with the U.S.," said Gheit. "It is going to punish Venezuela. It is going to punish Russia. It is also going to curtail Iran."
Melonhead has no options. He will just spout off crazy talk and become yet another failed South American dictator facing the execution squad. Iran and Russia are different. Watch as Putin's poodle engages in some wacky Russian military adventures. See the Evil Dwarf try to restart the tanker war. Or announce he has a nuke. Anything to reflate the bubble by establishing a fear premium.

Ain't gonna work, fellas. You failed to study history. You're effed.


Bob said...

The remark about Saudi Arabia playing ball is interesting. They had good cause to do so during the cold war, but I'm unaware of any similarly compelling motivation as regards the US at this point, especially with a departing administration. If they are helping to depress oil prices, my main question is what do they expect in return beyond the regional security guarantees they have long been assured of?

I do welcome the pain such a move would bring to AJ, Chavez, and especially Putin.

Lou Minatti said...


Depressed oil prices damages their main "enemy". Iran. Saudi Arabia can withstand cheap oil, the Iranian government cannot. US politics has little to do with it.

Bob said...

Yes, of course. Should have thought of that. Thanks.

Gotta love the Sunni-Shia dynamic!