Robert,
I have never followed oil as a commodity nor any oil stocks so I have only questions, no answers.
My first question after oil price is back to the good old supply and demand. So through price fixing, OPEC is going to jack up the price. For the US and other oil consuming nations, we will have some inflation pressures, not good. For the Asian nations, such as Japan and China, their demand is not high already and will react to price pressure accordingly.
So how is this going to help Asia recover? Selling less oil at a higher price nets the same as selling more oil at a lower price. I see the Saudis and may be a few Arab countries being the big benefactor, while others such as Mexico, Venezuela, Indonesia, Russia, as the big losers.
Will you or any oil experts enlighten me?
Ramsey |
