Oil: Venezuela Grabs At Straws: To Move Crude to $100

There was a time when Hugo Chavez gave its neighbours free oil. Cuba's electric grId was powered by thousands of diesel generators.The oil was a gift from Venezuela to spite America.

Anywhere on earth,-it has always ended in pains for the nation when the leader wants to be a people's man. One way to do that Is to give off the vibes that you hate the rich.The poor will applaud the leader.
Yet,they always miss the long term consequences.

And today,Venezuela is no longer able to play The God Father. .

But the country thinks it can reverse the trend.It has called for a "technical meeting of oil producing nations on October 21 to set a price band of oil to " move it ,first to $70 and to settle at $100,according to its oil minister.
Norway and Mexico are not interested.
Map of venezuela
The move worked between 1999 and 2005.America was fighting two wars and the world was a lot calmer. .
Russia, a non-opec producer, gives Delphic signals about the move. it In fact, blames OPEC for the fall in price."They( OPEC) fail to observe their own quotas .Had they done that,oil prices would have stabilised by now." Says the CEO of Rosnoft, a Russian Oil company.

This move will not work.Consider this ,for a stark example:  America used to be the world's biggest buyer of crude oil.Today it the world's biggest producer. That is a disruptively seismic shift.
Lower quotas by OPEC will encourage American engineers to crack more rocks.

Again most of the affected nations owe huge debts. They still borrow Euro Bonds dollar. Even the real dollar refuses to weaken.

Then there is that other factor.China and India.the biggest polluters. They have too much products that they would like to sell but that they are not able to.So they need less oil.And they have reserves: dollars and oii.Trilions of it.

We almost forgot yet another factor. The world has changed since OPEC was formed in 1973. Economically,it is no longer a cartel.The members are not equal.Saudi Arabia is at war of sorts with Iran.  And Russia.

Of course, no African country can afford cuts in production quotas.
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