(OilandGasInvestmentBulletin) – Current OPEC spare capacity would suggest a lower world oil price, but the distribution of this spare capacity could be one reason why oil prices are higher than many experts think it should be.
Usually the more spare capacity (supply) in a market there is the lower the price – simple economics. But the reality is that Saudi Arabia is the only country in the world with significant spare capacity to produce more oil in the world and influence prices. And they currently favour a $70-$80 barrel oil price.
In 2003, OPEC had 2 million barrels a day LESS spare capacity it has now, and oil was under $40/barrel – but spare capacity was more evenly spread out among the 11 member states.
If everybody has spare capacity, the potential for cheating on production quotas is greatly increased and that carries a higher downside risk for prices. Should the world economy grow more quickly, only the Saudis have the ability to increase production enough to meet demand and influence prices. Read entire article
(Reuters) – EU safety net not quite enough to break Greek fall
The thing about a safety net is that it all depends where you hang it. Read More Here
(Reuters) – Office vacancy rate hits 16-year high
The U.S. office vacancy rate in the first quarter reached its highest level in 16 years, but the decline in rents eased and crept closer to stabilization, according to a report by real estate research firm Reis Inc. Read More Here
(GlobalResearch) – Crisis of the Global Economy: Trade Conflicts and “Fair Trade”
Trade is now a favorite topic for many politicians and the media, especially between China and the U.S. Likewise, labor and progressive groups continue to delve deeper into trade issues, offering a variety of working class solutions. The far right, too, is obsessed with trade, using it to fuel nationalism and anti-China sentiment. No subject is prone to so much demagoguery combined with so little explanation.
Before one can offer a vision of “fair trade,” it’s helpful to understand what “trade” is. Read More Here
(GlobalResearch) – The Greek Financial Crisis and the European Timetable
Now that the Lisbon Treaty of 2009 is behind us, after it was forced through Ireland, after the Irish were told to keep voting on this until they said “yes”; now the European Union moves on to the next item on its timetable. The next step is to create a centralized Ministry in Brussels for Finance and Taxation, thereby further eroding the diminishing national sovereignty of the now twenty-seven member states; and what better way to do this than to organize a specific potshot against the little country of Greece? Read More Here
(GlobalResearch) – Imminent Dangers of Stagflation: U.S. Economic Policies Fail to Avert Hyperinflation
The United States send weak economic signals insufficient for a meaningful and sustainable economic expansion required to gain back confidence of national and foreign investors, futureofdollar.com finds in the present research. Political decision-making process is paralyzed by numerous disabilities, while external market constraints obstruct economic recovery. Stagflation is an imminent danger. Read More Here
(InfoClearingHouse) – What The Top U.S. Companies Pay In Taxes
As you work on your taxes this month, here’s something to raise your hackles: Some of the world’s biggest, most profitable corporations enjoy a far lower tax rate than you do–that is, if they pay taxes at all. Read More Here
(BusinessInsider) – Fed Still Fighting Over Whether The Problem Is Inflation Or Deflation
The Federal Reserve can’t make up its mind what the problem is. Specifically, it can’t agree on whether to fight inflation or deflation. So don’t expect any violent moves anytime soon. Read More Here
(WashingtonPost) – U.S. government a big commercial real estate player
Evidence of the federal government’s growing influence on Washington area commercial real estate is illustrated in big deals it is working on both sides of the table: auctioning a 127,000-square-foot Bethesda building previously occupied by the National Institutes of Health and moving to snatch up vast spaces in buildings on the private market that have been vacant for months. Read More Here
(WSJ) – Bank of Mom and Dad Shuts Amid White-Collar Struggle – Read More Here
(SilverBearCafe) – Will fraud lift gold prices to $10,000/ounce?
After the sub-prime catastrophe in banking and realty sector, which led to the global recession in 2008-09, it is the turn of bullion markets now. – Read More Here
(Gallup) – Underemployment Rises to 20.3% in March
Gallup Daily tracking finds that 20.3% of the U.S. workforce was underemployed in March — a slight uptick from the relatively flat January and February numbers. Read More Here
(InternationalForecaster) – The Smoke and Mirrors Economy – Bob Chapman
We have an economy run on smoke and mirrors, based on the manipulation of markets. That was accomplished via the executive order signed by President Ronald Reagan in 1988 in the aftermath of the stock market collapse of October 19, 1987, known as the “President’s Working Group on Financial markets.” This order intended to be implemented during emergencies has been used to manipulate markets worldwide 24/7. Read More Here
(CNN) – Unemployment Benefits Expire for Thousands
Extended unemployment benefits will temporarily expire for thousands of Americans on Monday because the Senate went on its spring recess without approving a one-month deadline extension. Read More Here
(MSN) – Inflation warning etched in steel
Pretend it’s 1933, as so many in the deflation camp think it is or soon will be (at least from the price-of-everything standpoint). If last Wednesday you reached for a copy of that day’s Financial Times, would you have expected to see the following headline — “Steel prices set to soar: Everyday goods will cost more” — in large print above the fold?
(Reuters) – Oil hits 18-month high on economic outlook
U.S. crude futures hit an 18-month high on Monday, climbing toward $86 per barrel on expectations of faster-than-expected economic recovery and increasing demand for fuel. Read More Here
(BusinessInsider) – The Scariest Jobs Chart Ever (Another View)
Here’s another view of what we’ve been calling the “Scariest Jobs Chart Ever.” It’s from Calculated Risk, and it shows the percent of job losses since the peak for all the post-war recessions. Read More Here
Video: LBMA Bullion Market Ponzi Scheme. Financial Manipulation in the Gold and Silver Markets Continue reading →
7 Broken Promises:
1. Make Government Open and Transparent
2. Make it “Impossible” for Congressmen to slip in Pork Barrel Projects
3. Meetings where laws are written will be more open to the public (republicans shut out)
4. No more secrecy
5. Public will have 5 days to look at a Bill
6. You’ll know what’s in it (Republican Senators didnt know)
7. We will put every pork barrel project online Continue reading →
Skyrocketing gas prices and $142 for a barrel of oil was the price it took for Americans to cry “uncle” and give up their last Arctic Wilderness. It was long gas lines in 1973 (the Oil Embargo) when Americans authorized the 800 miles of Trans-Alaska Pipeline through some of the most pristine country in Alaska.
Putting aside common sense and the environmental alternatives, drilling to reduce the price and our dependence on foreign oil ignored the published estimates of the impacts of new oil from the ANWR. Continue reading →
Retail gas prices inched lower overnight, but are likely to resume their own trek into record territory now that oil futures have broken out of the trading range where they had been for nearly 3 weeks. Continue reading →
Chakib Khelil said Tuesday that oil producers saw no need to raise supply and blamed record oil prices on factors outside the cartel’s control, such as U.S. pressure on Iran and the weak U.S. dollar. Continue reading →
The chief executive of the world’s largest energy company has issued the most dire warning yet about the soaring the price of oil, predicting that it will hit $250 per barrel “in the foreseeable future”. Continue reading →