Friday, January 30, 2015

Saudis told us they were going to break the price of oil in 2012.

I've been following my blog stats these past couple days, making a list of all the financial services corporations who've been coming here looking for Clive Johnson news, and noticed someone hitting on an old post of mine from 2012:

this blog - oil will go to $60 or lower. says who? the Saudis.

Huh! Who woulda thunkit, eh? Here's a quote reprinted from the original article:

“… you have to understand our geo-political equation and vulnerability. Our two most dangerous enemies are Iraq and Iran. Both are Shia, and both are trying to destabilize the Arab world and our Sunni kingdom by funding terrorism. Our only weapons against them are our wealth and our oil. Their current vulnerability is their financial fragility. Their financial reserves are a fraction of ours, and they desperately need money to prop up their economies. The ruling council has decided that over the next two years we have a brief window of opportunity to impoverish and weaken them by driving down the price of oil. Iraq and Iran need to produce and sell their oil at well over one hundred dollars a barrel. In the next twenty four months, we will gradually increase our production with the objective of breaking the price of crude down to sixty dollars a barrel. Aramco is raising its capacity to produce significantly more crude. Note that at the same time Iraq, Russia, and Libya are already increasing their exports, and Iran and Venezuela also need to sell more. Strategic reserves in the consuming countries all over the world have been topped out, and large amounts of oil are stored in tankers.”

“… we have the wind at our backs because of Europe’s problems and the weak global economy. Under normal recessionary circumstances, we would be reducing production to maintain current prices. Instead, we will be flooding a weak market already suffering indigestion.”

Whether or not the quote is believable is up to you - it was unattributed. However, if you can see it being true, then you should quit fucking piddling your panties about an imminent recession and global economic collapse.

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