The US dollar is highly important in today's economy for three main reasons: the huge amount of petrodollars, the use of the dollar as the world's reserve currency, and the decision taken by US President Nixon in 1971 to end the dollar convertibility into gold.
If car manufacturers are right about the prospects for electric vehicle sales, an oil price crash won't be far behind.
2016/01/12: a story that passed largely unnoticed in our American world. Sitting atop some of the planet's great oil reserves and getting 73% of their revenues from oil sales (income that dropped by 23% last year), the Saudi royals just hiked the domestic price of gas at the pump by 40%. Though it still remains dirt cheap by global standards, that act -- which is like charging for salt water in the middle of the ocean -- is an indication that something startling is going on. And note that, in the years to come, that kingdom's rulers are planning to cut back on similar subsidies for “electricity, water, diesel, and kerosene.” In other words, the world’s largest oil producer and a country of striking wealth (and foreign reserves) no longer feels comfortable giving away gas to its own population, even though this is part of a bargain it struck long ago for peace in the kingdom.
And the reason for this has little to do with Iran or Syria or Yemen or Iraq or the Islamic State. The problem is far more basic, as TomDispatch’s resident energy expert Michael Klare points out today. It’s the price of oil, which in the last 18 months has dropped through the floor. In a sense, the oil business -- with its constellation of giant energy firms, until recently among the most profitable companies in history, and its energy-producing states, until recently riding high -- may prove to be the natural-resource equivalent of a failed state, and, as Klare makes clear, the changing economics of oil will transform the political face of the planet. So keep your eye on Saudi Arabia. Things there could get ugly indeed.
Iran hopes its oil exports will return to the pre-sanctions level of 2.5 million barrels a day within the next three months once a deal with major powers to lift an oil embargo is finalized, the country's deputy oil minister said on Monday.
OPEC is already suggesting the US oil boom will end this year. Wishful thinking.
February 11, 2015 The front page of The Wall Street Journal on Tuesday, February 10 proclaimed "Oil-Price Rebound Predicted" according to the IEA (International Energy
Iran has repeatedly - and yet unsuccessfully - asked Saudi Arabia to trim its oil production this month so that Tehran could make some cash on higher crude prices.
Simple: to undermine Tehran.
L'organizzazione attacca gli Stati estranei al cartello: "Non riduremmo la produzione, ma se altri vogliono farlo sono benvenuti". Le quotazioni del
2014-11-25: On Thanksgiving Day, what used to be the world’s most powerful oil cartel will gather in Vienna to decide how much oil to produce. Righ
La divisa russa è ai minimi storici, interviene la Banca centrale, ma non basta. Il greggio inverte la rotta dopo che il Brent scende sotto i 60
I listini europei bruciano 200 miliardi col ribasso del petrolio e l'indebolimento di Wall Street, Piazza Affari perde il 2,8%. Non è piaciuta al
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Plunging oil prices are particularly threatening for one of the most dysfunctional petro states.
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Vladimir Putin has some ideas to help the struggling Russian economy. None of them are going to work.
Oil prices are at five-year lows thanks to OPEC's hands-off attitude. But that alone probably won't be enough to strangle the surge in U.S. oil
Nafeez Ahmed: West's co-optation of Gulf states' jihadists created the neocon's best friend: an Islamist Frankenstein
John Chapman: WMD was the rationale for invading Iraq. But what was really driving the US were fears over oil and the future of the dollar.