WOW, isn't it expected with the aggressive and irresponsible GOV and FED? They are crazy as they did in the past 10 years and tried to create more bubble. Gosh, where does the money come from for tax cut?
And of course, there’s your typical “rebel uprising” news from Nigeria this week… rumors that OPEC is going to cut production… and more than one CNBC cheerleader calling for a quick U.S. economic comeback, leading to higher U.S. demand.
“But the real reason oil finally broke $100,” says our oil man Bryon King, “is a fundamental shift in global production. The old ‘Seven Sisters’ are aging relics -- Standard Oil, Royal Dutch Shell, British Petroleum, Texaco, Chevron, Exxon and Mobil. They are no longer what they once were. Today, these poor spinsters collectively control less than 10% of the world's oil resources.
“The old seven have now been replaced by the new ‘Seven Other Sisters’ (SOS).” These are:
Saudi Aramco (Saudi Arabia)
Gazprom (Russia)
CNPC (China)
NIOC (Iran)
PDVSA (Venezuela)
Petrobrás (Brazil)
Petronas (Malaysia).
“The party line from the SOS and OPEC,” Byron says, “is that ‘the market is fully supplied.’ Well, only if you like paying $100 a barrel.”
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