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Iran Stops Oil Sales To British, French Companies

Tyler Durden's picture





 

The geopolitical game theory escalates once again, as Iran, which four days ago halted exports to peripheral European countries took it up a notch, and has as of this morning halted sales to British and French companies. Reuters reports: "Iran has stopped selling crude to British and French companies, the oil ministry said on Sunday, in a retaliatory measure against fresh EU sanctions on the Islamic state's lifeblood, oil. "Exporting crude to British and French companies has been stopped ... we will sell our oil to new customers," spokesman Alireza Nikzad was quoted as saying by the ministry of petroleum website." Here is the actual statement from MOP.ir. As a reminder, on January 27 we said how Iran was about to "Turn Embargo Tables: To Pass Law Halting All Crude Exports To Europe." And so it has - now, the relentless media campaign about China isolating Iran in response to American demands has to be respun: recall that in early February Reuters told us that "China will halve its crude oil imports from Iran in March compared to average monthly purchases a year ago, as a dispute over payments and prices stretches into a third month, oil industry sources involved in the deals said on Monday." Apparently that may not have been the case, as there is no way Iran would have escalated as far as it has unless it had replacement buyers of one third of its crude. Incidentally, this is just as we predicted in "A Very Different Take On The "Iran Barters Gold For Food" Story." The end result of this senseless gambit by the west: Europe has less oil, the Saudi fable that it has endless excess suplies is about the be seriously tested, China has just expanded a key crude supply route, and Russia is grinning through it all as Brent prices are about to spike. Iran didn't invent chess for nothing.

This is what we cautioned in early February:

we humbly submit that instead of taking the Reuters article at face value, and one may certainly do that, what may instead be happening as Iran migrates to a non-dollar based international trade system is the testing of the waters of a non-USD regime, more importantly, one quietly encourage by  China, who is a very complicit participant in the transition to a world in which the US Dollar suddenly finds itself irrelevant. Whether replaced by gold, or a currency backed by a basket of hard assets (the CNY?) we don't know. However, we know one thing: China needs Iran's crude, which at last check was among the world's top 5 oil producers, and had the world's third largest proven oil reserves after Saudi Arabia and Canada, and despite media reports that it is actively looking for crude import alternatives, we would allege that this is nothing but purposeful disinformation. After all why would China comply with US demands for an enhanced Iranian embargo? The whole point of China's foreign policy to date has been to counteract US pushes and provocations abroad without fail. Why should it make an exception now. Frankly, we don't buy it.

Sure enough, ten days later neither does the world.

More from Reuters:

 

Industry sources told Reuters on Feb. 16 that Iran's top oil buyers in Europe were making substantial cuts in supply months in advance of European Union sanctions, reducing flows to the continent in March by more than a third - or over 300,000 barrels daily.

 

France's Total has already stopped buying Iran's crude, which is subject to fresh EU embargoes. Market sources said Royal Dutch Shell has scaled back sharply.

 

Among European nations, debt-ridden Greece is most exposed to Iranian oil disruption.

 

Motor Oil Hellas of Greece was thought to have cut out Iranian crude altogether and compatriot Hellenic Petroleum along with Spain's Cepsa and Repsol were curbing imports from Iran.

As we tweeted a few days ago, "Greece may be broke buit at least it has no oil."Win-win. Er... wait.

Needless to say, it is now time for Saudi Arabia to step up or shut up. And if many are correct, stripping away all the posturing about Saudi's near infinite excess supplies, may reveal a very ugly picture. And a $10 spike in brent in short order.

Saudi Arabia says it is prepared to supply extra oil either by topping up existing term contracts or by making rare spot market sales. Iran has criticised Riyadh for the offer.

Finally, here is why it is quite obvious that China has stepped up:

Iran said the cut will have no impact on its crude sales, warning that any sanctions on its oil will raise international crude prices.

 

Brent crude oil prices were up $1 a barrel to $118.35 shortly after Iran's state media announced last week that Tehran had cut oil exports to six European states. The report was denied shortly afterwards by Iranian officials.

 

"We have our own customers ... The replacements for these companies have been considered by Iran," Nikzad said.

Surely, when it comes to shooting itself in the foot, Europe truly has no equal.

 


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Sun, 02/19/2012 - 11:27 | Link to Comment GeneMarchbanks
GeneMarchbanks's picture

You're cut off!

Sun, 02/19/2012 - 11:31 | Link to Comment redpill
redpill's picture

No Soup For You!

Sun, 02/19/2012 - 11:38 | Link to Comment i-dog
i-dog's picture

No hot soup for you, Sarko!

PS. How are the poms going to warm their beer and chill their pies now?

Sun, 02/19/2012 - 11:59 | Link to Comment trav7777
trav7777's picture

Iran has no choice but to attack.  Embargoes like this are recognized acts of war.

We're going to do a pearl harbor on them, strangle them until they throw the first punch and we can claim we are the victims.

Sun, 02/19/2012 - 12:06 | Link to Comment LasVegasDave
LasVegasDave's picture

dont knock it; it's a good strategy

Sun, 02/19/2012 - 12:13 | Link to Comment Ahmeexnal
Ahmeexnal's picture

oil? who cares.

nobody gives a shit.

certainly not the eurosheeple, who are partying like it's 1299:

http://www.youtube.com/watch?v=MHqJTOEfIW4

Sun, 02/19/2012 - 12:27 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Don't we have unicorn piss for that or something?

The Banking Houses say so.

Citigroup says Peak Oil Theory is Dead:

http://blogs.wsj.com/source/2012/02/17/citigroup-says-peak-oil-is-dead/

Sun, 02/19/2012 - 12:45 | Link to Comment Transformer
Transformer's picture

Mr Hendrix,

  Glad to see you have seen the light about both "oil for dollars" and "No peak/lots of abiotic".  Glad to have you on board.

Sun, 02/19/2012 - 12:54 | Link to Comment Coast Watcher
Coast Watcher's picture

You forgot the /sarc

Sun, 02/19/2012 - 13:06 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

If someone wanted to sell oil for dollars and then have their bank trade dollars for whatever currency they wanted there would be no way for that to happen, thus why Saddam wanted oil for euros, he couldn't trade the dollars because dollars had no liquidity on the global market!  Nobody was using dollars in 2003!  Nobody!  How would he have traded his oil for dollars and then dollars for euros?  No way that could happen!  It's not like the dollar has been the most liquid market since it has been the reserve currency or anything.

And we can create oil out of thin air, like we do money.

Sarc/

Sun, 02/19/2012 - 13:44 | Link to Comment Transformer
Transformer's picture

So, you're still stuck on that "I'll just take my dollars over to the bank on the corner and exchange them for Euros" theory, huh?  I'm sure that works fine for you and me and most everybody else.  But what happens when you take $3-400 million dollars up to the teller and ask for Euros? (a supertanker load of oil)  Maybe a slight delay before you get your Euros?  . . . . .  Maybe a bump in the Forex price?  And when you consider this could be happening over 20 times a day throughout the world. . . . maybe a big bump in the Forex?

That's why oil is traded in dollars and dollars only (except for soon to be invaded rogue nations) and then held in reserves, and used to purchase US treasuries.....

Sun, 02/19/2012 - 14:03 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

This argument is used as the reason why the US went to war with Iraq.  It's a ridiculous theory.  The Skull and Bones Clan, led by the Bushes, wanted to search for oil and blow some shit up.  They didn't find much oil, but they destroyed a part of the world that they wanted to destabolize as much as possible before the Final War.

The fact is, diversifying out of a currencie is not that hard to do.  The FX market is more liquid than any other, and considering the dollar was vying for the title of the carry trade means it was an extremely liquid market. 

The fact of the matter is, Saddam would have tried to trade dollars for euros, he would not have gone and flat out demanded euros.

And it wouldn't have affected the dollar the way you think it would have.  The Fed knew that, the WH knew that.

Sun, 02/19/2012 - 14:07 | Link to Comment Transformer
Transformer's picture

Glad your with me on the "where the hell did that methane on Titan come from" front.

I'm not understanding the last part of your post.  From everything I've read, Saddam did demand, and get, Euros for his oil.  We could ask him about that to be sure, but he's dead now.

Sun, 02/19/2012 - 14:38 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

There is a diference between crude and methane, yes?

Everything you have read?  Did the authors interview Saddam?  Did you hear the tapes?  Or is this just a rumor, which has no logic behind it, considering that anyone who wants to diversify out of a currency can do so on the open market, the largest and most liquid market there is.

Sun, 02/19/2012 - 14:44 | Link to Comment AmCockerSpaniel
AmCockerSpaniel's picture

SWIFT  ..... Bank controls all these swaps (FX). Push the button and Iran or any other country can not very easily swap currencies.

Sun, 02/19/2012 - 15:45 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

So you are saying that the Global Banking Cabal that controlls the universe had the means to stop Saddam from trading currency but couldn't stop him from selling his oil for euros?  Think about how crazy that sounds.

Sun, 02/19/2012 - 17:21 | Link to Comment Transformer
Transformer's picture

They did stop him from trading oil for Euros.  That's the point.

Sun, 02/19/2012 - 18:21 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

The point is they could have stopped him in the marketplace, they didn't need to go to war.  But they did go to war.  So why did they go to war?  Not to stop him trading for euros, they could have done that in the marketplace.

Sun, 02/19/2012 - 18:33 | Link to Comment Transformer
Transformer's picture

ahhh, now we're getting somewhere.  How could they have stopped him in the marketplace?  It's a serious question.  The only way I could see that they could do that would be to apply sanctions, like is being done to Iran now, and is not working.  And of course, we are standing by ready to go to war to stop Iran.

Sun, 02/19/2012 - 13:14 | Link to Comment Flakmeister
Flakmeister's picture

Hey Transformer...

Did you ever compute what fraction of the first 5 miles of the interior of the earth would be comprised of oil for the numbers you gave re: abiotic production??

IIRC, you said 60 million bpd... Assume it has been going on for 800 million years and that it migrates at 1 mm per year (or 1 km per million years)....

I'll give you a big hint.. 60 million barrels of oil is about 3/4 of a cubic mile... 

Also please explain why if oil is being produced at a reasonable uniform rate at some point in the interior why the amount of oil found does not increase as you go deeper???

Please reconcile that with the following data http://pubs.usgs.gov/dds/dds-067/CHB.pdf

Sun, 02/19/2012 - 13:22 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

But Titan has methane, which means that....which means....shit I lost where I was going with that.

Unicorn One, calling for backup.  Unicorn One, copy....

Sun, 02/19/2012 - 14:19 | Link to Comment tmosley
tmosley's picture

Which means there is a method for producing methane that doesn't involve ancient biomass, duh.

I mean, I know it's cool to act like an idiot at school, but not so much in the real world.

Sun, 02/19/2012 - 14:46 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Unicorn One, this is Unicorn Two, good to hear your voice!

Is there any crude on Titan?  Is there crude anywhere that has not sustained life?

Sun, 02/19/2012 - 15:23 | Link to Comment Greyhat
Greyhat's picture

Did you ever drill there? :)

Sun, 02/19/2012 - 16:04 | Link to Comment tmosley
tmosley's picture

Nice deflection.  Methane exists on Titan.  How did it get there?  Could the same process have put it here?  Is that an ongoing process?

But you don't like to think about things that go against your ideology of death and inevitable extinction.

Hell, even your avatar speaks to that.  12 Monkeys was about the hopelessness of changing what is supposed to be a pre-ordained conclusion.

Sun, 02/19/2012 - 16:21 | Link to Comment Mr Lennon Hendrix
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That is not what that movie is about at all.  You don't ever read between the lines, do you?

Sun, 02/19/2012 - 16:31 | Link to Comment tmosley
tmosley's picture

Yes, you would say that, because a part of your poisonous ideology is to defy the fact that your ideology is poisonous.  You instead claim that it is the fundamental nature of the universe that is poisonous.  It's a weak excuse that allows you to lay down and die rather than thinking for yourself.  A slightly more advanced form of idiots preparing for a literal zombie apocalypse.

Sun, 02/19/2012 - 16:34 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

I saw that the human spirit is one of good.  I say nature creates balance.  This balance is harmonious.  And you don't think I'm trying to fight for our freedom?

Sun, 02/19/2012 - 16:41 | Link to Comment tmosley
tmosley's picture

War makes strange bedfellows.  The US is fighting on the same side as al-Qaeda right now in Syria, and was doing the same in Libya.

The rest of your comment is mumbo jumbo.  There is no such thing as imbalance within a system if you are talking about forces and energy.  If you are talking about motion then there is no such thing as balance.  Harmony is an empty word.  

There is energy everywhere.  We just have to learn how to harness it to our own ends.  Denying that this is happening is denying reality.  Denying that it even COULD happen is denying all possible existance.  That is, it is the worship of death and oblivion.  I guess you can find balance and harmony there.

Sun, 02/19/2012 - 18:30 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

I have never written that we can't find an alternative energy source.  But we haven't, and crude production, which is the lifeblood of the economy, has peaked, so the problem will not be mitigated anytime soon.

I also think we will develope ways to live without the growth of energy, it just means people will be walking/biking more than driving and it means people will be farming instead of selling cell phones.  It means a new way of life, one I look forward to. 

I would be getting sick of you judging my character, by the way, if I respected you.  I don't.

Sun, 02/19/2012 - 15:34 | Link to Comment Flakmeister
Flakmeister's picture

Are you at it again...

As I said elsewhere, set up a simple model in Excel and see what comes of it...

 

Sun, 02/19/2012 - 16:00 | Link to Comment tmosley
tmosley's picture

I am not saying that it is a viable source.  I am saying that idiots like LH here throw up strawmen that even they are too weak to tear down.

I am of the opinion that if abiotic methane/deep biotic oil is ever to be a viable source of energy, we are going to need either a radical advance in extraction or exploration technology.  That may or may not happen.  

People like LH discount even the possiblity of its existance when its existance is CLEAR.  It is PROVEN, unless you want to open the can of worms that is "life on Titan".  As I have sadi REPEATEDLY, the only real question is "what is the recharge rate".  If this is a method of recharging existing wells, then it is clearly impossible.  If it is recharging wells that we don't know about, or that are exceptionally deep, then it may be moot.  It probably is.

Yet this strawman keeps coming up as if abiotic oil is the same thing as the thousands of other technologies that can be used to produce or extract other sources of coal, oil, natgas, and hydrogen.

Sun, 02/19/2012 - 19:03 | Link to Comment Transformer
Transformer's picture

Interesting questions you bring up tmosley.  I bet that indeed there is a recharge rate of surface  oil, and it is very fast.  Fast in terms of geological processes, which could mean millions of years to recharge a medium size oil pool.

As far as the technology of extraction and exploration, the Russians have put a tremendous amount of effort into that technology and have evidently gotten pretty good at it, good enough to make them number one.  But, because of industry wide Flakmeister thinking, no respecting geologist in the West would ever even dare to look at what the Russians think.  they'd probably lose their job.  And Flakmeister is a physics Phd.

Science is conservative and always goes with the money.  And the money is always with the current profitability profile.

Sun, 02/19/2012 - 13:31 | Link to Comment Transformer
Transformer's picture

(Hey Mort, I got a bite, I'll just yank on the line now)

And of course, since you wanted numbers, so bad, I just made those up for you.  LOL  I was as clear as I could get about that without actually saying "/sarc"

A friend at a party suggested that maybe the entire center of the earth, might just be filled with oil.  Now wouldn't that be a kick.  LOL again

To answer your question, uhhhh. . . .  the amount of oil does seem to increase as you go deeper, at least that's what the Russians think, and they are the world's number one producer.   You might ask BP about that deeper theory, as their discovery and spill in the gulf seemed to involve a huge amount of oil, that and drilling down to way below the biotic level.

It's all about calcium carbonate reacting with iron oxide (very common in the earth) at 50,000 atmospheres of pressure and 1500C.  That's how you make oil without any dinosaurs around.

http://origeminorganicadopetroleo.blogspot.com/2011/10/russian-ukrainian...

Sun, 02/19/2012 - 13:52 | Link to Comment Flakmeister
Flakmeister's picture

Buddy.... start doing some real computations... You aint gonna convince me with your arm waving... having Ph.D. in physics means I ain't easily impressed by psuedo-science blowhards on the Internet....  

If I thought you had the brain power, I would suggest that  you put together a toy model in Excel to see what different assumptions result in...

You come to two conclusions, if abiotic production exists at any significant level we would be drowning in the stuff.... and if you clamp back on the production rate to match observed distributions then you find that the rate is *much* smaller than the rate which we extract it at...

You also have to deal with the fact that every fucking drop of oil found has a *unique* biological fingerprint...

Please reconcile the drilling sucess rate as a function of depth... after all it is only fucking data and not handwaving...

---

But you are likely too fucking stupid or ignorant to even question anything that pre-fits into your desired world belief....

Sun, 02/19/2012 - 14:17 | Link to Comment Transformer
Transformer's picture

Well, I've only got an EE in engineering, so you got me on that front.

It seems that you want me to use statistics to prove your Dinosaur theorem.  And of course we know all about statistics (and damn lies).  And of course you still got me on the education thing.

I just don't know, this is getting kinda boring.  I'm sort of leaning toward the hollow earth filled with oil theory, now.  Due to the well know magnetic properties of crude oil, it would certainly explain the ever shifting poles. . .  as that oil just continues to slosh around in there. 

/sarc

(Iadded that so you'd know I was kidding)

Sincerely,

Fucking stupid ignorant arm waving blowhard

Sun, 02/19/2012 - 15:31 | Link to Comment Flakmeister
Flakmeister's picture

Well... do the calculation re: the volume and if you cannot STFU...

Nice strawman re: dinosaurs....

You are either an asshat of the highest order or are you are one of the creationist abiotic oil types.... I've dealt with a few of them as well here..

I'll give you another hint... compute the volume of 2 spheres of different radii and assume the interior surface is the source of your oil....

Let me guess... even if simple mathematics shows that your pet theory is a crock of shit, it still must be correct because you think so...

Sun, 02/19/2012 - 16:07 | Link to Comment tmosley
tmosley's picture

Nice ad hominem there re the creationist crack.

Implying that you beleive there is life on Titan.

Implying you are a nutter.

Possibly implying you utilize doublethink instead of logic to formulate your opinions.

Sun, 02/19/2012 - 16:17 | Link to Comment Flakmeister
Flakmeister's picture

Nope... our very own BR believes in abiotic oil because God created the world ~4000 years ago and that is the only way we could have oil....

Sun, 02/19/2012 - 16:34 | Link to Comment tmosley
tmosley's picture

I don't see anyone in this thread with the initials BR, nor do I see anyone espousing this view, meaning you are comparing Transformer and others to this "BR" person, and using his ideas to imply that your actual opponent's arguments are wrong.

IE you are using ad hominem.

IE you have a weak argument, and have to resort to that sort of crap because of it.

Sun, 02/19/2012 - 16:53 | Link to Comment Flakmeister
Flakmeister's picture

Why dont you ask "Bicycle Repairman" about the age of the earth and his views on abiotic oil???

Sun, 02/19/2012 - 17:00 | Link to Comment tmosley
tmosley's picture

Even if that is his opinion, you are not speaking with him now (he has exactly zero comments upthread), making your comment ad hominem.

Sun, 02/19/2012 - 18:58 | Link to Comment Likstane
Likstane's picture

More like 6000

 

Sun, 02/19/2012 - 15:39 | Link to Comment Flakmeister
Flakmeister's picture

Here is another little thought experiment for you...

Compute the volume of earth where the conditions that you require exist...

Now compute the fraction of material that can participate in the reaction...

Now propagate the oil towards the surface....

Ever notice that all the Russian abiotic oil batshit does not have any simple calculation showing what the rates would be?

Wonder why......

(Never did address the issue of biological markers either.... did you??)

 

Sun, 02/19/2012 - 16:35 | Link to Comment FrankThinkTank
FrankThinkTank's picture

Derrrrrp

Sun, 02/19/2012 - 16:36 | Link to Comment FrankThinkTank
FrankThinkTank's picture

Derrrrrp

Sun, 02/19/2012 - 17:18 | Link to Comment Transformer
Transformer's picture

Well, Flakmeister, you sure got every body all riled up.  You want some figures.  Lets see, the earth is 4 billion years old.  Now if the abiotic process 60 miles down on our little spheroid floating through space, made just one barrel per year, that would be 4 billion barrels.  ummm.... not quite enough..... so lets say it make 10 barrels per year... and that would be 40 billion barrels...... still not quite enough, so how about somewhere between 100 and 1000 barrels per year, giving somewhere between 400 billion and 4 trillion total barrels.  That certainly seems possible to me from an area of 200 million square miles of hot calcium carbonate and iron oxide at 1500C and 50,000 atmospheres.  that would be just 1 barrel of production for every 200,000 square miles of your inside the sphere area.  Does that seem possible?

And of course, then the earth just stored it all up, waiting for us primates to come along and invent the ICE.  But wait, would you rather have me do the computation for just 4000 years, you know, since dog created the universe in a week?  Oh.... it's just too damn confusing.

Pseudo science is my specialty!!!   LOL

So, are you saying that the Russian theory is about batshit.... as their biologic material.... that doesn't make sense, mammals have only been around for ...... it's just so confusing.

Sun, 02/19/2012 - 17:36 | Link to Comment Flakmeister
Flakmeister's picture

You are the one that is confused...

For shits and giggles, what fraction of the earth is calcium carbonate?

Why do we not find more oil the deeper we go?

Why is there no oil found in the deep gold mines is south africa (you know the ones that go down to 13,000 ft??)

Sun, 02/19/2012 - 18:51 | Link to Comment tmosley
tmosley's picture

You make the assumption that oil is both produced and retained everywhere.  This assumption is not valid.

Further, it is likely that most of the methane and oil that are produced wind up rising to the surface in miniscule concentrations.

If oil is produced in significant quantities abiotically, there must be an energy source.  And if there is an energy source, it is highly unlikely to be evenly distributed throughout the surface.

I suspect you realize this, and have no way to refute the argument, so you resort to using a strawman in the form of "no oil in gold mines".

You don't have to have an answer for everything.  Some things just need more research.  That is another major problem I have encountered with POTs (wow, not far from there to crackPOTs, lol), they want to pretend that we know everything there is to know about everything.  I suspect this is related to their anti-scientific and anti-technological progress bias.

Sun, 02/19/2012 - 19:15 | Link to Comment Transformer
Transformer's picture

Jeeez flakmeister,  Our bountiful earth, the Gaiia, who makes all kinds of things for us to use, oil, metals, granite, dinosaur bones, etc.  Do you expect them all to be mixed together?  16,000' is generally considered to be the lower limit of biotic material, you know where dinosaurs died and then the climate and other upheavals piled other stuff on top.  So, from one point of view, they didn't go deep enough to get to the abiotic.  The Abiotic could be considered to start at 16,000'.  And those BP engineers with that deepwater rig in the Gulf, they knew that.  At least they found out. . . .   about pressures and temperatures they had never encountered before, which blew their equipment apart and set the rig on fire, and then, they couldn't cap it, or at least it took them forever, and it's not exactly clear how they did it, or even if they really did. . .  witness lots of reports of new leaks in the area.

Just a couple more hours and we'll wrap up this discussion.

Wed, 02/22/2012 - 03:57 | Link to Comment March Hare
March Hare's picture

I think i recently read something about worms in the rocks, some downhole... do you recall?

btw this thread is pretty damn funny, thanks for the banter / entertainment....

http://www.popsci.com/science/article/2011-06/worms-discovered-two-miles-underground-are-deepest-dwelling-complex-life-forms

Sun, 02/19/2012 - 16:44 | Link to Comment oddjob
oddjob's picture

I'll give you a big hint.. 60 million barrels of oil is about 3/4 of a cubic mile...

3/4 of a cubic mile is roughly 20 billion barrels...you are off by a tad.

Sun, 02/19/2012 - 17:59 | Link to Comment Flakmeister
Flakmeister's picture

Yes, I typed too quicky and forgot to add per year...

60,000,000 per day is ~3/4 cubic mile per year...

Sun, 02/19/2012 - 12:46 | Link to Comment CrashisOptimistic
CrashisOptimistic's picture

Citibank knows nothing.

FYI the oil shipping reports showed no bookings of tankers from Iran to Europe even months ago.  Iran's not announcing anything here that was not already true.  They have not sold oil to Europe for months.

This is not rocket science.  There is no oil slack in the world.  No one can open their spigot wider.  If Europe won't buy Iranian oil, there will be someone (China) to buy what they won't, and just shave a dollar or two off the price, using the loss of a customer as leverage on the vendor.  The EU will then be more frantic buying from whoever China no longer buys from (having gotten that price break and cancelled an order) and will bid that oil up.

Result, no change.  When you are selling food in a famine, you will always have customers and it is a seller's market.

Sun, 02/19/2012 - 13:01 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

This is like that biblical shit about 7 lean years, isn't it?

Sun, 02/19/2012 - 13:17 | Link to Comment King_of_simpletons
King_of_simpletons's picture

Start bombing Iran already. This is not the Greece default saga which has been drawn out for more time that it is worth.

Here is a tip for starters. Take a MOAB and drop it on Tehran. See all the mullahs scatter. Round them up and send them to allah land.

Makmood Akkmadenajob will be hiding is some rat hole like all the warrior class islamic leaders waiting for the prophet to descend from somewhere. Put a cap in him. Iran war is over.

US will be bazillion more dollars in debt. That's easy to fix. Just print. 

Sun, 02/19/2012 - 13:25 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Awkward Dinner Jacket is playing chess, so why not flip the board and cap his ass.  Fuck games, time to kill some human-beans!

Ah'company yee-haw!!!!

Sun, 02/19/2012 - 13:38 | Link to Comment King_of_simpletons
King_of_simpletons's picture

Yeh baby, cap his ass. We shall not forget 911 started by the Iranians. New al-qaeda document reveals that the iraqians got funding from iranians for 911. Powell is mad. He is going to show the document to the UN as proof, for a global coalition of the willing.

Sun, 02/19/2012 - 13:16 | Link to Comment trav7777
trav7777's picture

yeah, citi has 3.5mbpd coming from fucking shale in ND?  What kind of insane shit is that?

US oil production is rising again?  Like it did after Prudhoe, right?  what happened after that?

Sun, 02/19/2012 - 13:26 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

To economists growth is infinate, because they so so.

Sun, 02/19/2012 - 14:24 | Link to Comment tmosley
tmosley's picture

It is increasing slightly.  We'll have to wait to see if it develops into a real trend.

http://www.indexmundi.com/energy.aspx?country=us&product=oil&graph=produ...

But you want to say everyone is doomed NOW!  

Sun, 02/19/2012 - 14:48 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Soon we will move from 5 mill to 10 mill in no time!

What's the EROEI nowadays anyway?

Sun, 02/19/2012 - 15:35 | Link to Comment hardcleareye
hardcleareye's picture

This isn't about being "doomed".....  it's about being realistic and understanding what the options are. 

It seems to me that if you are in a car that is going to crash and you have foreknowledge of said crash than it would seem to me that the prudent course is to plan the crash to do the least amount of damage instead of stepping the accelerator pedal to hasten said crash.

By buying time you may allow some bushy tail engineer to come up with a way to prevent said crash or min it?

Is my logic flawed?

Sun, 02/19/2012 - 16:11 | Link to Comment tmosley
tmosley's picture

The reality isn't about being doomed or not, but these guys follow a certain special religion where the only conclusion is depression leading to extinction.  Any and all arguments that say otherwise are attacked, along with the messangers, generally not with any sort of logic, but rather ad hominem and appeals to emotion.

Understand that your metaphor is a good one.  But they claim that the wall you wish to avoid extends everywhere and in all directions and there is no means of avoiding it or lessening the impact.

Your logic is perfect, and is more or less my exact argument.

Sun, 02/19/2012 - 16:26 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Unicorn One, this is Unicorn Two, you are doing great.  Copy.

Sun, 02/19/2012 - 16:13 | Link to Comment Flakmeister
Flakmeister's picture

A very simple analysis of the Bakken shows that the rate of increase per rotary rig per annum is about ~100 barrels per day....

So in order to get the Bakken up to 3.5 mmpbd you would need about 10,000 drilling rigs running flat out for 3 years....

Why don't you google up how many oil rigs capable of horizontal drilling currently exist in the world?

Sun, 02/19/2012 - 16:44 | Link to Comment tmosley
tmosley's picture

Implying more can't be built.

Implying better ones can't be built for this purpose.

Sun, 02/19/2012 - 17:26 | Link to Comment Flakmeister
Flakmeister's picture

Nope.... just a little perspective....

Shit don't happen just because you wish it to be so...

 

Sun, 02/19/2012 - 18:53 | Link to Comment tmosley
tmosley's picture

Right, it happens because prices drive risk reward scenarios, which drive action.

My "wishes" have nothing to do with it.  Nor does the zealotry of the POTs.

Sun, 02/19/2012 - 18:53 | Link to Comment tmosley
tmosley's picture

Right, it happens because prices drive risk reward scenarios, which drive action.

My "wishes" have nothing to do with it.  Nor does the zealotry of the POTs.

Sun, 02/19/2012 - 13:28 | Link to Comment Bicycle Repairman
Bicycle Repairman's picture

LOL.  "They" "found" more oil when they needed to. Whocouldaknowed?  Time to adjust to the new meme.  Someone better get the memo to the academic community.  Peak Oil perfessers can lick their wounds and go into hiberation until 2035.  When the domain "oildrum" becomes available, I'm going to buy it and shut it down until then.

Sun, 02/19/2012 - 15:27 | Link to Comment hardcleareye
hardcleareye's picture

Yup, they found it and they are going to find more, but did they tell you how much it is going to cost to get it out of the ground and to the gas pump?

Oh they forgot to do that?  And you didn't bother to ask?  Of course you have ASS-U-ME D that new innovations will happen and reduce production cost and bring it in line to what it is today. 

And young bright bushy tailed engineers (I have a few of those in my family in the oil and gas patch industry) will discover how to make unicorns shit skittles.  And in the TIMEFRAME of your choosing.

BR I suggest you go post your comment on The Oil Drum, it would be real interesting and amusing to see the "old guard" (you know the old geezers with gray hair their gentials, that have been working in this industry for 40 plus years) tear up your "supporting data"......

Oh wait they have already done that, you just haven't bothered reading it, you must be part of the Obama "hopium" crowd.

I seem to recall Trav7777 tearing you a new asshole on this issue a while back. (maybe I have confused you with someone else)

Sun, 02/19/2012 - 17:19 | Link to Comment Taint Boil
Taint Boil's picture

 

 

Yeah I think it was him (bicycle guy)and when I [we] mentioned The Oil Drum that really stirred up the ole 5hit storm. How anyone would have a hard time with The Oil Drum is beyond me ........

Sun, 02/19/2012 - 13:35 | Link to Comment Matt
Matt's picture

Citigroup says Peak Oil Theory is Dead

They are correct. With North Dakota and the Athabasca Basin, we are well on track to producing 160 million barrels per day by 2020 and 320 million barrels per day by 2030. Within 5 years, America will begin exporting 50 million barrels of oil per day to the rest of the world, with a $50 royalty per barrel, thus allowing budget expansions of $2 Billion per day, and $500 million per day in national debt reduction. This is absolutely Bullish!

Sun, 02/19/2012 - 14:43 | Link to Comment hardcleareye
hardcleareye's picture

OMG, that is funny...  did Citigroup also say at what the cost of producing that oil will be?  Did they also explain/study what happens to the economy when the end user has to pay said cost????????  Did they talk about the production rate of those reserves?

Peak oil is NOT about running out of oil, it's about running out of "cheap oil"......  our economy goes into recession when oil exceeds about $100/barrel.  Yes, innovation will occur to lower production cost, but when and to what magitude is the big "short term" question!  Also what is the RATE of production of these reserves? If you do a little more home work you will discover that the production of these reserves is in excess of $100/barrel, some say oil sands need more like $120/barrel to work. 

So these new reserves have a lower RATE of production and a higher cost of production (that puts the economy in a recession) than the soon to be/already depleted reserves.

That IS PEAK OIL!!!!!!!!!!!!!

Gail The Actuary has some articles to further explain from The Oil Drum regarding the Athabasca Basin aka tar sands,

http://www.theoildrum.com/node/5701

http://www.theoildrum.com/node/5708

http://www.theoildrum.com/node/5666

 

(Bullish my ass....).

Sun, 02/19/2012 - 17:57 | Link to Comment Bicycle Repairman
Bicycle Repairman's picture

Yeah.  The oil industry and the oil producing countries are sharing their data with "Gail the Actuary".  LOL. 

Mon, 02/20/2012 - 00:49 | Link to Comment Flakmeister
Flakmeister's picture

And the Russians are sharing a "top secret" source of oil with you.... <rolls eyes>

Sun, 02/19/2012 - 12:08 | Link to Comment Zero Debt
Zero Debt's picture

Spot on. It is the western powers who are committing the agression. There is no Iranian air force circling around London or Paris. There is no navy outside New York. It is embarrassing to see how the mainstream media is presenting Iran as a threat, where it is actually just defending itself.

Sun, 02/19/2012 - 12:09 | Link to Comment Cursive
Cursive's picture

@Zero Debt

Passive agressive always beats agressive in the battle of moral high ground.  Not that I like it, but it is what it is.

Sun, 02/19/2012 - 12:12 | Link to Comment GeneMarchbanks
GeneMarchbanks's picture

LOL @ 'moral high ground'.

Sun, 02/19/2012 - 13:22 | Link to Comment LasVegasDave
LasVegasDave's picture

Lets just hope we do the right thing this time and grab the oil.

We fucked up Iraq pretty good and didnt even leave with the oil.

Invasion checklist

1.  take out nukes

2. Kill Mullahs

3. Hang A-Jad from lamp post

4. Confiscate oil

Problem solved

Sun, 02/19/2012 - 13:31 | Link to Comment Bicycle Repairman
Bicycle Repairman's picture

So you forsee a "cakewalk"?

Sun, 02/19/2012 - 14:11 | Link to Comment roadhazard
roadhazard's picture

"Showered with flowers" and they'll all turn Christian.

Sun, 02/19/2012 - 14:09 | Link to Comment hardcleareye
hardcleareye's picture

Gave you a +1 because I think you forgot to use <sarc> at the end of your post.

Sun, 02/19/2012 - 12:29 | Link to Comment ToNYC
ToNYC's picture

To strangle "them", you must have real power. Five dollar petrol kills power. Circle jerk logic bought only by fools.

Sun, 02/19/2012 - 13:13 | Link to Comment Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

How about if Iran shows some creativity and pulls off a false flag on the west.  Pop off a small nuke at a Tehran day care center and claim that Heimi McVeighberg of Mossad did it and attack Israel.  "What is good for the goose is good for the gander"!

Sun, 02/19/2012 - 13:40 | Link to Comment Dr Bob
Dr Bob's picture

i have been saying this same thing for a year now and people think im crazy. this is exactly how its going to go down. great thought, double thumbs up.

Sun, 02/19/2012 - 13:58 | Link to Comment jtg
jtg's picture

Like we didn't attack in 1973 during the Arab oil embargo to the West. In fact, Europe then capitulated and started the massive Muslim immigration that is overrunning Europe and leading to Eurabia.

Sun, 02/19/2012 - 14:04 | Link to Comment hardcleareye
hardcleareye's picture

I have a good friend who's young son is on the Lincoln.  Like most US citizens, to date, she is "blissfully" unaware of the danger her son is in.  I have chosen to remain silent in our discussions, as explaining this to her will bring her nothing but grief and angst, after all she can do nothing to change the inevitable outcome.

This young man went into the navy because he could not find work.  I wonder how many other mothers (in Iran and the US) are in her shoes?

Sun, 02/19/2012 - 19:09 | Link to Comment Cathartes Aura
Cathartes Aura's picture

for what it's worth,

This young man went into the navy because he could not find work.

is a very poor excuse nowadays, and shows a distinct lack of both morals and intelligence.

I understand the story, I just believe we need to stop "honouring" the voluntary enlisting of global murderers in the MIC.

when the "mothers" and the fathers begin to educate themselves, and the children they claim to love, in the same spirit of the 60's, where they sent their kids to Canada to preserve their integrity, THEN we'll know the machine is faltering. . . has yet to happen though.

 

Sun, 02/19/2012 - 15:25 | Link to Comment cranky-old-geezer
cranky-old-geezer's picture

 

 

Iran has no choice but to attack.  Embargoes like this are recognized acts of war.

For once I agree with you ...well ...sorta anyway.  US embargo is an act of war, and Iran has every right to attack the US, but they won't.

No problem, Russia & China will (gladly) do it for them. 

Japan is now part of that alliance, and I'm curious what $3.5 - $4 trillion in dumped Treasuries would look like on the bond market.   More than that if you count Treasuries Russia holds.

...then comes thermonuclear attack to sorta finish things off.

Sun, 02/19/2012 - 15:33 | Link to Comment Cyrano de Bivouac
Cyrano de Bivouac's picture

We'll see. Th Anglo-American financial system tried to provoke Nazi Germany into a war with the USA(EX. Lend Lease Act) but failed so then they turned their attentions to Japan. After Pearl Harbor,  Germany declared war on the Allies to fulfill treaty obligations to Japan. So we(Anglo American financial system) got our wish-a full blown war with the Nazi's by means of Japan's premptive strike. So how the conlict with Iran will play out is not that clear cut there are other scenarios just as likely.

Sun, 02/19/2012 - 11:37 | Link to Comment Greyhat
Sun, 02/19/2012 - 11:44 | Link to Comment SHEEPFUKKER
SHEEPFUKKER's picture

Where have I seen this movie before?

Sun, 02/19/2012 - 12:00 | Link to Comment mc_LDN
mc_LDN's picture

I know... Amreica F*** Yeah!!!

Sun, 02/19/2012 - 12:04 | Link to Comment Greyhat
Greyhat's picture

This movie? "Starve Germany into submission this winter." Or the later remakes like Iraq?

Sun, 02/19/2012 - 11:52 | Link to Comment quintago
quintago's picture

Actually SA has shown a fall in exports. They are also stockpiling.

http://www.jodidb.org/WDS/TableViewer/tableView.aspx?ReportId=9620

 

 

Sun, 02/19/2012 - 12:29 | Link to Comment Randall Cabot
Randall Cabot's picture

Europe has plenty of oil reserves until Purim when the NWO will begin the strike to take Iran's oil:

 

"The European Commission said last week that the bloc would not be short of oil if Iran stopped crude exports, as they have enough in stock to meet their needs for around 120 days."

http://www.cnbc.com/id/46445889      

Purim: Why War On Persia
(Iran) Could Start March 7th

2-19-12

 

http://rense.com/general95/purimwar.html     

 

 

 

 

 

 

Sun, 02/19/2012 - 16:09 | Link to Comment Cyrano de Bivouac
Cyrano de Bivouac's picture

It might be wise to take cover on March 7th. First Gulf War- on Feb 28th 1991 Purim festival starts-150,000 Iraqi soldiers trapped on road from Kuwait to Basra(lots killed), Bush1 orders cessation of hostilities. Second Gulf War-on March 17, 2003 Purim festival starts, Bush delivers ultimatum to S. Hussein and aerial(Shock and Awe campaign) starts on 19th. Incidentally if you have ever wondered about the genesis of the strange term "Shock and Awe'  well "skekineh" is the Hebrew word for God's presence in the Holy of Holies in the temple in Jerusalem. Skip to the present, aerial war started on Libya on Purim 2011. Mind you I've said nothing.

Sun, 02/19/2012 - 12:10 | Link to Comment Kaiser Sousa
Kaiser Sousa's picture

check, and mate...biatchez.....

Sun, 02/19/2012 - 12:38 | Link to Comment rwe2late
rwe2late's picture

 Perhaps this should not be portrayed as Iran cutting off the oil.

How is Iran supposed to sell oil to countries which refuse to have normal financial dealings?

Apparently, some countries have chosen to go along with the US embargo against Iran, even if it means shooting themselves in the foot.

Sun, 02/19/2012 - 22:55 | Link to Comment Buck Johnson
Buck Johnson's picture

Definitely no soup for them.  Two reasons, one there is no way that Saudi Arabia has that much extra capacity to supply the rest of th world with a few million more barrels a day, especially when they will be in competition with each other.  Two, I can't see Saudi Arabia actually wanting to do that when they know that Iranian oil will be off the market for a long time and I can't see them continuing to keep the production up that high.  Oh one more thing, if you don't think that Saudi Arabia's (they are Sunni a minority ruling a Shia majority) main oil terminals and process areas aren't targeted by Irans rockets you are very dead wrong.  I bet anything they will take out their main Oil refinery (which is the largest in the world) and other facilities.  Even a miss would shoot oil prices up 30 bucks in a day or more.

Sun, 02/19/2012 - 11:31 | Link to Comment Corn1945
Corn1945's picture

Europe relying on Saudi Arabia's bullshit statistics is going to prove to be a really dumb decision. 

Sun, 02/19/2012 - 11:33 | Link to Comment Uncle Remus
Uncle Remus's picture

Europe relying on bullshit is going to prove to be a really dumb decision.

Sun, 02/19/2012 - 15:12 | Link to Comment TheFourthStooge-ing
TheFourthStooge-ing's picture

Bullshit is America's biggest export.

 

Sun, 02/19/2012 - 15:37 | Link to Comment cranky-old-geezer
cranky-old-geezer's picture

 

 

... that plus inflation.

Sun, 02/19/2012 - 11:34 | Link to Comment Mike2756
Mike2756's picture

$95 their minimum? they cut output in december.

http://www.cnbc.com/id/46445698/

Sun, 02/19/2012 - 12:35 | Link to Comment ToNYC
ToNYC's picture

Bulls%t statistics prove 19 cessna barely-ready, party-hardy saudis can fly big jets aerobatically and make the debris disappear in the stage fog.

 

Sun, 02/19/2012 - 12:46 | Link to Comment sun tzu
sun tzu's picture

Everything blew up and burned up except for their passports, which were found intact without a scratch on them

Sun, 02/19/2012 - 12:55 | Link to Comment optimator
optimator's picture

Four months ago I was thrown out of flight school because I couldn't handle a Cessna 172, now I'm flying a Boeing 757!

Sun, 02/19/2012 - 13:04 | Link to Comment Uncle Remus
Uncle Remus's picture

La Quinta huh.

Sun, 02/19/2012 - 13:20 | Link to Comment Mike2756
Sun, 02/19/2012 - 16:56 | Link to Comment my puppy for prez
my puppy for prez's picture

I'm going to "try this at home"!  Let any believer in the official/gubment 9/11 story join me in setting our passports ablaze, as per the scientific method.  

Get back to me if yours survives completely unharmed!

Sun, 02/19/2012 - 11:43 | Link to Comment SolidSnake961
SolidSnake961's picture

Chess was invented in India during Gupta Empire. Check wikipedia. http://en.wikipedia.org/wiki/History_of_chess

Sun, 02/19/2012 - 11:50 | Link to Comment quintago
quintago's picture

India invented hemorrhoids.

Sun, 02/19/2012 - 13:51 | Link to Comment hardcleareye
hardcleareye's picture

All that curry...

Sun, 02/19/2012 - 12:00 | Link to Comment trav7777
trav7777's picture

the persians imposed the caste system and were the rulership class in india, especially punjab

Sun, 02/19/2012 - 12:02 | Link to Comment SolidSnake961
SolidSnake961's picture

persians didn't rule india when chess was invented, they came later on....amazing that ppl would down vote my post cuz it has facts

Sun, 02/19/2012 - 12:22 | Link to Comment Randall Cabot
Randall Cabot's picture

Claiming the Indians invented chess is like claiming the English invented baseball.

Sun, 02/19/2012 - 13:10 | Link to Comment King_of_simpletons
King_of_simpletons's picture

I salute you "One liner" historian.

Sun, 02/19/2012 - 14:33 | Link to Comment tmosley
tmosley's picture

Better get to editing wikipedia then: http://en.wikipedia.org/wiki/History_of_chess

Unless you are being sarcastic, since the English did invent stoolball, the most likely predecessor to baseball.

Sun, 02/19/2012 - 23:28 | Link to Comment Randall Cabot
Randall Cabot's picture

Exactly, the Persians invented chess out of some predecessor Indian game just like the Americans did with Cricket to invent baseball and Rugby to invent football.

Sun, 02/19/2012 - 20:00 | Link to Comment falak pema
falak pema's picture

cricket...all padded up. Behind wicket.

Sun, 02/19/2012 - 12:32 | Link to Comment Sabibaby
Sabibaby's picture

You're either with us (the US) or them (Iran). Facts only matter to trrsts, you're not a trrst are you?

...and the down votes are probably from referencing Wikipedia...

Sun, 02/19/2012 - 13:50 | Link to Comment hardcleareye
hardcleareye's picture

For God sakes!  Some people on ZH take themselves way to serious, he is not writing a pier reviewed paper on the subject matter, a quick web craw reference to Wiki is not a bad place to start on the education/introduction of the matter.

Sun, 02/19/2012 - 15:07 | Link to Comment aheady
aheady's picture

Long walk... short peer.

Sun, 02/19/2012 - 15:16 | Link to Comment TheFourthStooge-ing
TheFourthStooge-ing's picture

Peer one imports.

 

Mon, 02/20/2012 - 00:12 | Link to Comment Uncle Remus
Uncle Remus's picture

Pierless.

Sun, 02/19/2012 - 19:58 | Link to Comment falak pema
falak pema's picture

God, if he exists knows history before it gets written. In fact he could write the Wiki all on his own. Maybe he does! 

Sun, 02/19/2012 - 21:13 | Link to Comment Sabibaby
Sabibaby's picture

You know you're right, if you want history as Isreal wants it or Iran or wants it, or the truth?

Sun, 02/19/2012 - 20:01 | Link to Comment falak pema
falak pema's picture

I'm the last Melian.

Sun, 02/19/2012 - 19:56 | Link to Comment falak pema
falak pema's picture

ha ha ha, now this is priceless. Persians invented the Vedas. Hey, buy yourself a history book first. Right? One that begins before 1776.

Sun, 02/19/2012 - 13:08 | Link to Comment King_of_simpletons
King_of_simpletons's picture

@solidsnake

You are talking to the fox news crowd. They believe news that they'd like to believe.

Sun, 02/19/2012 - 13:14 | Link to Comment SolidSnake961
SolidSnake961's picture

Well it looks like that is half of ZH if I take the even split votes on my post as a representation.

Mon, 02/20/2012 - 01:45 | Link to Comment Tompooz
Tompooz's picture

Even if the Persians didn't invent chess (the origins go back even further than India--ancient Egyptian papyrus shows pictures of a game that looks like chess), they certainly took to it with great enthousiasm and are still strong players today.

I was a member of the Tehran chess club and remember many a defeat, particularly from the hands of the police commissioner... he lent me his Nimzowitz book ("My game")  to improve my game. :-/

Sun, 02/19/2012 - 11:33 | Link to Comment LaLiLuLeLo
LaLiLuLeLo's picture

Meet your new leader: OPEC

Sun, 02/19/2012 - 13:45 | Link to Comment hardcleareye
hardcleareye's picture

NOT!!!!!!!!!!  Remember OPEC is being paid in paper.... (and tell me about their military?).  Has I recall OPEC was the reason we ditched to gold standard, keep our gold here so when "this day comes" OPEC is left holding an empty bag.

Of course there is such a thing as "unintended consequences".

Sun, 02/19/2012 - 11:34 | Link to Comment BW
BW's picture

 

March 20, 2012 - Iranian oil bourse will start trading oil in other currencies apart from the US dollar

http://www.dailypaul.com/215073/march-20-2012-iranian-oil-bourse-will-start-trading-oil-in-other-currencies-apart-from-the-us-dollar

Sun, 02/19/2012 - 12:02 | Link to Comment The Swedish Chef
The Swedish Chef's picture

The same day Greece has a huge bond rollov...erhh, payment to make. It´s gonna be fun week!

Sun, 02/19/2012 - 12:47 | Link to Comment sun tzu
sun tzu's picture

They might not make it to that date

Sun, 02/19/2012 - 11:34 | Link to Comment The Swedish Chef
The Swedish Chef's picture

Brent, bitchez! 

 

This weeks no brainer money maker: long Brent. Perhaps short APPL too...

Sun, 02/19/2012 - 11:42 | Link to Comment Everyman
Everyman's picture

Ouch, that is going to leave a mark .... on the global oil markets!  Smells like 1972, with an aroma of 1983!  Most people in this day and age have no recollection of the gasoline and fuel prices in the 1970s and 1980s.  That is when they made inflation "ex-energy and ex-food", because of the fluctuations in crude and refined petroleum products.  Get ready to visit yesterday, when oil  defined the market and economies, and not bullshit like CDS and make believe financial products.

If this sticks, we are in a global recession.  This is really the last fucking thing Europe needs now with the Greece situation and the lack of money there.  Can't pay off debt or even the interest if you are paying to keep warm, keep the gas tank filled, or keeping the lights on!

How much do you think inflation will go up in the EU?????

 

Wonder what it looks like economically when playing musical chairs, and the "music stops"???  This is it, and that prediction of $4.30 per gallon in the US this late spring-early summer, just went up to the +$5 a gallon!

Sun, 02/19/2012 - 11:54 | Link to Comment Alex Kintner
Alex Kintner's picture

Ah the late 70s in the US -- Gas lines Bitchez!

An hour wait for a 5 gallon limit. Oh sweet youth, I loved thee.

Sun, 02/19/2012 - 12:05 | Link to Comment Red Raspberry
Red Raspberry's picture

If you license plate ended in an even number then you could get gas on the even days.

Sun, 02/19/2012 - 12:11 | Link to Comment Alex Kintner
Alex Kintner's picture

Oh yeah I forgot. Good call.

Sun, 02/19/2012 - 12:18 | Link to Comment Ahmeexnal
Ahmeexnal's picture

That never happened in the US, nor could it ever happen.

Such rationing only happens in places like...Cuba.

 

/sarc

Sun, 02/19/2012 - 14:35 | Link to Comment tmosley
tmosley's picture

Empirically we are becoming more and more like Cuba every day.

Sun, 02/19/2012 - 19:27 | Link to Comment zerozulu
zerozulu's picture

I doubt we will be able to get free health care or education. Think of a sub-cuba.

Mon, 02/20/2012 - 00:15 | Link to Comment Uncle Remus
Uncle Remus's picture

I like old Chevys powered by tractor engines.

Sun, 02/19/2012 - 12:30 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

+ 1

Yeah I was in some of those lines too.  Even while living in Texas.  The Texans blamed it more on Jimmy Carter rather than OPEC (.gov directing where the fuelk would go).

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