According to studies prepared by PFC Consulting Limited, a Washington-based wholly owned subsidiary of Power Finance Corporation Limited, and German bank Deutsche Bank, Venezuela is the most vulnerable country to the financial crisis.The 80s oil bust bankrupted many of these thugocracies. Today's oil bust will do the same. Chavez and Ahmadinejad will be swinging from lamp posts this time next year. But this oil bust makes Putin much more dangerous. His Georgian adventure was merely a preview of what he intends to do to rile up the oil market.
PFC considers that Venezuela needs that the price of oil averages USD 97 to balance its accounts while in 2000, the South American country required that the price of the barrel of petroleum was USD 34.
The results of the study, released by Reuters, show that Nigeria can balance its budget with a price of USD 71 a barrel; Iran (USD 58); Saudi Arabia (USD 62); Kuwait (USD 48); United Arab Emirates (USD 51) and Algeria (USD 35).
Deutsche Bank says that next year Venezuela and Iran require that the average price of oil remains at USD 95; Saudi Arabia at USD 55 and Russia at USD 70.
Wednesday, October 15, 2008
Melonhead better get busy!
I warned Melonhead and his Psychotic Dwarf companion again and again. Oil's now down 50% off its peak. Melonhead knows what that means.