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I sat in on some tanker webcasts last week. The interim CEO of one company just came out and let people know that some members of OPEC will charge them 3x's as much, if they tried to ship it to the U.S., but was offering discounts if they'd ship it to China and India.
Heck, the U.S. doesn't really even depend on OPEC oil any longer. The number one supplier of Oil in the U.S.? Canada. More than any middle-eastern country out there. And the % they are supplying is increasing every day (They've discovered that the oil in Canada is more than the Middle East ever had - 1700 Billion Barrels of oil. Some are putting it closer to 2.3 Trillion).
The reason that the U.S. is still involved in many oil situations, is because their allies (Europe and elsewhere) are still dependant on OPEC oil. So the U.S. has decided to take a bit of a hit for their European neighbors. As far as the U.S., they could just say: "We're tired of helping, screw you all", give Canada about 1 trillion to help out their oil infrastructure - and the U.S. Oil needs would be set by their northern neighbors.
As far as the recession? It's just a matter of what he's buying. Warren Buffet, like me, is very concerned about folks who don't have money. They're getting screwed over big time by economic vultures during this recession. The only person that can hurt? Is me in the end. I keep on hearing this lunacy about "Taking Oil away from the Futures markets". Not only would that instantly drive the price of oil up further, but it would eliminate the ONE group of people that's trying to keep the price of oil from instantly jumping to $400 a barrel. In addition, that's a direct attack on my line of work.
And I really like my job.
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