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Wow, Ahmadinejad gives it straight ..

Arkaign

Lifer
Oct 27, 2006
20,547
1,053
126
http://news.yahoo.com/s/nm/200...ran_oil_ahmadinejad_dc

"At a time when the growth of consumption is lower than the growth of production and the market is full of oil, prices are rising and this trend is completely fake and imposed," President Mahmoud Ahmadinejad said in a televised speech."

Interesting ... I have to agree with him for the most part on this. Interesting how sane he sounds when he's not saying something ridiculous about Israel.
 

Pabster

Lifer
Apr 15, 2001
16,987
1
0
Easy to speak when you're raking in the billions.

When he offers his oil for less than the market price to USA we'll look in to it.
 

Craig234

Lifer
May 1, 2006
38,548
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Originally posted by: Pabster
Easy to speak when you're raking in the billions.

When he offers his oil for less than the market price to USA we'll look in to it.
If he did that, he would be crazy.
 

mxyzptlk

Golden Member
Apr 18, 2008
1,893
0
0
Originally posted by: Pabster
When he offers his oil for less than the market price to USA we'll look in to it.
Why would any sane, rational person ever do that?

Originally posted by: Arkaign
Interesting how sane he sounds when he's not saying something ridiculous about Israel.
*whispers* what if what he says about Israel isn't so ridiculous?
 

fallout man

Golden Member
Nov 20, 2007
1,787
0
0
Mahmoud Achu-dinnerjacket may run his mouth with some choice, calculated rhetoric, but he's not a dumbass like our CIC. Home-boy has a PhD in engineering. =/
 

Arkaign

Lifer
Oct 27, 2006
20,547
1,053
126
Originally posted by: Pabster
Easy to speak when you're raking in the billions.

When he offers his oil for less than the market price to USA we'll look in to it.
Does he set the oil prices for the Iranian exports? I honestly don't know how that works.

I think the content of what he has to say is interesting, if not a bit obvious. Market manipulation is pretty rampant at this point.
 

ayabe

Diamond Member
Aug 10, 2005
7,449
0
0
Originally posted by: Arkaign
Originally posted by: Pabster
Easy to speak when you're raking in the billions.

When he offers his oil for less than the market price to USA we'll look in to it.
Does he set the oil prices for the Iranian exports? I honestly don't know how that works.

I think the content of what he has to say is interesting, if not a bit obvious. Market manipulation is pretty rampant at this point.
Iran is part of OPEC and thus they do not directly control what the cartel does.
 

Arkaign

Lifer
Oct 27, 2006
20,547
1,053
126
Originally posted by: ayabe
Originally posted by: Arkaign
Originally posted by: Pabster
Easy to speak when you're raking in the billions.

When he offers his oil for less than the market price to USA we'll look in to it.
Does he set the oil prices for the Iranian exports? I honestly don't know how that works.

I think the content of what he has to say is interesting, if not a bit obvious. Market manipulation is pretty rampant at this point.
Iran is part of OPEC and thus they do not directly control what the cartel does.
I pretty much get the OPEC side of it, I'm just curious if Ahmadinejad has the authority to sell oil for whatever price he wants to, or if that's totally out of his hands.

Pabster's post, while possibly just a sarcastic jibe, made me a little more curious about the situation.

One thing I do know is that Ahmadinejad is more of a figurehead than one might think, being under the 'Supreme Leader' Ali Khamenei, and the vaguely comic-book sounding 'Council of Guardians'.
 

Dari

Lifer
Oct 25, 2002
17,134
37
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Originally posted by: fallout man
Mahmoud Achu-dinnerjacket may run his mouth with some choice, calculated rhetoric, but he's not a dumbass like our CIC. Home-boy has a PhD in engineering. =/
Chemical Engineering to boot. Nothing to sneeze at.
 

RightIsWrong

Diamond Member
Apr 29, 2005
5,649
0
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Originally posted by: Pabster

When he offers his oil for less than the market price to USA we'll look in to it.
You mean like Chavez did immediately after Katrina and the Bush administration flat out refused? Or when he offered it cheaper to the poor?

Before you bash the link...look at the bottom of the story for the source of the article.

Venezuelan President Hugo Chavez offered to send food and fuel to the United States after the powerful Hurricane Katrina pummeled the US south, ravaging US crude production.

The leftist leader, a frequent critic of the United States and a target himself of US disapproval, said Venezuela could send aid workers with drinking water, food and fuel to US communities hit by the hurricane.

"We place at the disposition of the people of the United States in the event of shortages -- we have drinking water, food, we can provide fuel," Chavez told reporters.

Chavez said fuel could be sent to the United States via a Citgo refinery that has not been affected by the hurricane. Citgo is owned by Venezuela's state-owned oil company, Petroleos de Venezuela (PDVSA).

Source

Standing on the deck of an oil tanker in Massachusetts Bay on Monday, Venezuelan energy officials kicked off the third year of a controversial program of delivering subsidized home-heating oil for the U.S. poor.

A Houston unit of a state-owned company backed by Venezuelan President Hugo Chavez, a foe of the Bush administration, will supply oil at 40 percent below market prices in 23 states, an expansion from 16 states last year.

The donations by Citgo Petroleum Corp, owned by Venezuelan state-owned Petroleos de Venezuela, are worth about $147 million at market prices.
 

StageLeft

No Lifer
Sep 29, 2000
70,150
2
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Ahmad is not a dictator. I rather doubt he can set his country's prices. He isn't even the top leader there.

Now, in regard to his intelligence vs Bush, I'm positive he's a much smarter man, though of course he's often wrong. In this case, he's not wrong.
 

heyheybooboo

Diamond Member
Jun 29, 2007
6,278
0
0
On a completely unrelated note last week (I think) I saw oil futures for next year for $250/barrel ....

being purchased for 62 cents each.
 

Aimster

Lifer
Jan 5, 2003
16,129
2
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Iran has contracts with oil companies that buy the oil at the market rate and Iran gets a cut of that. Thats how I think it works.

 

heyheybooboo

Diamond Member
Jun 29, 2007
6,278
0
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The two major oil bourses are the New York Mercantile Exchange (NYMEX) in New York City and the International Petroleum Exchange (IPE) in London.

Iran opened the Kish Oil Bourse in February of 2008:

Currently the Kish Bourse is only trading in oil derived products, generally those used as feedstock for the plastics and pharmaceutical industries.

However officially published statements by Oil Minister Gholamhossein Nozari indicate that the second phase, to establish trading in crude oil directly, which has been suggested might one day perhaps create a "Caspian Crude" benchmark price analogous to Brent Crude or WTI will only be started after the Bourse has demonstrated a reasonable period of trouble-free running.
 

dahunan

Lifer
Jan 10, 2002
18,191
1
0
Originally posted by: Pabster
Easy to speak when you're raking in the billions.

When he offers his oil for less than the market price to USA we'll look in to it.
you knew that was a retarded comment right after you hit reply :D
 

Fern

Elite Member
Super Moderator
Sep 30, 2003
26,907
173
106
Originally posted by: Arkaign
http://news.yahoo.com/s/nm/200...ran_oil_ahmadinejad_dc

"At a time when the growth of consumption is lower than the growth of production and the market is full of oil, prices are rising and this trend is completely fake and imposed," President Mahmoud Ahmadinejad said in a televised speech."

Interesting ... I have to agree with him for the most part on this. Interesting how sane he sounds when he's not saying something ridiculous about Israel.
He needs a PC and someone to teach him how to use Google.

Link

Consumption is up, supply isn't keeping up and inventories are shrinking.

Now Iran may have excess oil. I've read about them storing a bunch on tankers because no one wants to buy it - too high in sulphur content. I.e., low quality oil with limited refineries available for it.

Fern
 

Arkaign

Lifer
Oct 27, 2006
20,547
1,053
126
Originally posted by: Fern
Originally posted by: Arkaign
http://news.yahoo.com/s/nm/200...ran_oil_ahmadinejad_dc

"At a time when the growth of consumption is lower than the growth of production and the market is full of oil, prices are rising and this trend is completely fake and imposed," President Mahmoud Ahmadinejad said in a televised speech."

Interesting ... I have to agree with him for the most part on this. Interesting how sane he sounds when he's not saying something ridiculous about Israel.
He needs a PC and someone to teach him how to use Google.

Link

Consumption is up, supply isn't keeping up and inventories are shrinking.

Now Iran may have excess oil. I've read about them storing a bunch on tankers because no one wants to buy it - too high in sulphur content. I.e., low quality oil with limited refineries available for it.

Fern
I don't think I've seen anything that is supply-related that explains the incredible surge in prices. It seems largely speculation and manipulation-related.
 

palehorse

Lifer
Dec 21, 2005
11,521
0
76
I'm sure even Charles Manson rads the paper and discusses the weather from time to time... :laugh:
 

Fern

Elite Member
Super Moderator
Sep 30, 2003
26,907
173
106
Originally posted by: Arkaign
Originally posted by: Fern
-snip-
I don't think I've seen anything that is supply-related that explains the incredible surge in prices. It seems largely speculation and manipulation-related.
If you read that link you'll see inventories are shrinking. You'll see demand rising. Now, not US demand (we reduced demand), but global demand.

Inventories don't shrink unless demand exceeds supply.

Also, know that, for example, a 1% shortage in supply doesn't translate into 1% increase in supply. It results in a vastly larger price increase.

I saw a link here a while ago where current global demand exceeds supply by 500 million barrels daily (most like I have disremebered the correct number). Haven't been able to find it though.

But again, Iran has excess supply. But their oil is "dirty" and I don't think we, or many others, can refine it.

Fern
 

BansheeX

Senior member
Sep 10, 2007
348
0
0
Fern is right, Mr. Ahmada-whatever isn't being detailed enough here. Demand is indeed exceeding supply for REFINED product, more large old and massive fields have gone into decline, more oil-producing nations are growing and subsidizing their own product, and I don't think we've built a refinery in quite a long time, so an excess of dirt oil really doesn't matter to us.

This misattribution of the problem and people crying out for government to just "fix it" is going to result in an even worse mess before this is all over. I see rationing, price controls, windfall taxes, more blocking, driving investors even further from our markets, and a slew of other socialist nonsense that has been tried before.
 

Arkaign

Lifer
Oct 27, 2006
20,547
1,053
126
So is this the peak oil that everyone was denying the possibility of? To listen to Rush Limbaugh, there's enough oil for thousands of years of the same usage.
 

Fern

Elite Member
Super Moderator
Sep 30, 2003
26,907
173
106
Originally posted by: Arkaign
So is this the peak oil that everyone was denying the possibility of? To listen to Rush Limbaugh, there's enough oil for thousands of years of the same usage.
Unlikely.

2 new platforms are coming on-line in the nest year or so. That will increase US production.

Then there's matter of what were otherwise uneconomical reserves that can now be tapped. Then some they may be able to be with new techniques (horizintal drilling, pumping steam etc).

Then there's the new find off the coast of Brazil (IIRC).

Then there's untapped ANWAR and off shore areas.

Then there's unexplored areas, whether because they are in dangerous places (Iraq), or drilling is prohibited.

There are also current supply disruptions. E.g., Nigera because of rebels, Mexico and Venuzuela because of incompetence etc.

It's a big guess really.

Edit: Forgot to add in the ever diminishing production from established producing wells.
Fern
 

frostedflakes

Diamond Member
Mar 1, 2005
7,925
1
0
"This is unacceptable! We're the only ones allowed to manipulate oil prices!" :laugh:

Originally posted by: Fern
Originally posted by: Arkaign
Originally posted by: Fern
-snip-
I don't think I've seen anything that is supply-related that explains the incredible surge in prices. It seems largely speculation and manipulation-related.
If you read that link you'll see inventories are shrinking. You'll see demand rising. Now, not US demand (we reduced demand), but global demand.

Inventories don't shrink unless demand exceeds supply.

Also, know that, for example, a 1% shortage in supply doesn't translate into 1% increase in supply. It results in a vastly larger price increase.

I saw a link here a while ago where current global demand exceeds supply by 500 million barrels daily (most like I have disremebered the correct number). Haven't been able to find it though.

But again, Iran has excess supply. But their oil is "dirty" and I don't think we, or many others, can refine it.

Fern
This doesn't sound right, isn't global oil consumption around 87 million barrels per day?
 

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