On 12/5/2014 4:05 PM, jr_...@yahoo.com [FairfieldLife] wrote:
>
Richard,
It's obvious that China is doing fairly today and in the past few
years. We really can't predict with certainty what will happen in the
global market in the next few years.
As far as I'm concerned, it's good for me and the US to have cheaper
gas prices in the gas station. More likely, Saudi Arabia and the OPEC
countries would cut down their oil production in order to get better
prices in the world market.
But the US has its own worries and responsibilities. Specifically,
how can we reduce the national debt? Who's going to pay for it? The
rich or the poor?
>
/"Oil and gas provide 68 percent of Russia’s exports and 50 percent of
its federal budget. Russia has already lost almost $90 billion of its
currency reserves this year, equal to 4.5 percent of its economy, as it
tried to prevent the ruble from tumbling after Western countries imposed
sanctions to punish Russian meddling in Ukraine. The ruble is down 35
percent against the dollar since June." /
Oil Shock Streaks Across Globe From Moscow to Tehran to Caracas. Ready
for $40?
http://tinyurl.com/kbu5szm
>
---In FairfieldLife@yahoogroups.com, <punditster@...> wrote :
On 12/4/2014 4:22 PM, jr_esq wrote:
>
But I'm not sure if that's good or bad. With it's population of
a billion or more, China can produce and sell more to increase
its economic output.
>
A country the size of China can't produce very much without oil,
John. It may not be even capable of feeding it's own people in the
next few years.
It is an open question what will happen to Algeria, Iraq, and
Libya if oil prices hover at half the budget break-even costs for
a year or two, given the extreme fragility of the region and
political risk of cutting subsidies.
A world already unsettled by Russian-inspired insurrection in
Ukraine to the onslaught of Islamic State in the Middle East is
about be roiled further as crude prices plunge. Global energy
markets have been upended by an unprecedented North American oil
boom brought on by hydraulic fracturing, the process of blasting
shale rocks to release oil and gas.
According to what I've read, "oil below $70 is already playing
havoc with budgets across the global petro-nexus. The fiscal
break-even cost is $161 for Venezuela, $160 for Yemen, $132 for
Algeria, $131 for Iran, $126 for Nigeria, and $125 for Bahrain,
$111 for Iraq, and $105 for Russia, and even $98 for Saudi Arabia
itself, according to Citigroup."
'Saudis risk playing with fire in shale-price showdown as crude
crashes'
The Telegraph:
http://tinyurl.com/pw5dgfs
>
It’s official: America is now No. 2
<http://finance.yahoo.com/news/official-america-now-no-2-150936444.html>
image
<http://finance.yahoo.com/news/official-america-now-no-2-150936444.html>
It’s official: America is now No. 2
<http://finance.yahoo.com/news/official-america-now-no-2-150936444.html>
The Chinese economy just overtook the United States economy to
become the largest in the world.
View on finance.yahoo.com
<http://finance.yahoo.com/news/official-america-now-no-2-150936444.html>
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