And then on top of all that, Libya stops pumping oil! OMG. And the crude oil market doesn't even move on that news.
As I've said before, only three producers matter: Saudi Arabia, Russia, and the US. Period. Dot.
Others don't agree. From May 3, 2018:
Meme: Libya is the "new" swing producer. LOL.
By the way, did you notice that "breaking news" item: "Iran invites private companies to export crude."One conservative estimate of the effect of this chaos [in Libya] on oil production is for a 200,000-bpd decline. This is an amount substantial enough to push prices higher, especially now that global supply is tightening thanks to OPEC’s efforts, but mostly on the back of Venezuela’s strife.Comment: seriously? This amount is substantial enough ... seriously? North Dakota alone could see a production increase of 200,000 bopd as early as this summer.
Wanna know why that won't happen? Even Lloyds of London won't ensure tankers against which the US has sanctions. This is not rocket science, but it's clear that Iran is near the tipping point. It costs a lot to:
- maintain / develop a nuclear weapons program
- maintain a conventional army
- buy modern weaponry to compete with Saudi Arabia (is Iraq even in the picture any more?)
- invest in air defense against Israel
- placate the 100,000s of Iranians now demonstrating for freedom from the "I-a-told-you-so's"
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Video of the Day
Sent to me by a reader. Best part of the video. We still see Mr Krauthammer.
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