Whats the Magic Number? Cmon,must be an easy guess.Yep got it folks. Its 700. First it was the USA which was and i must say still is all fixated over this number and now we have a new friend or rather companion for them.
This set of people must be thinking that they are here today in this position because of the mess created by the greed of the financial companies of the USA. I would rather say that this is where they were supposed to have been or maybe a bit better.They had an awesome time because of some of the actions of the ex-President of the USA and also the cheap money that helped inflate asset prices beyond reasonable levels.
Now that the bubble has burst,they are crying, feeling bad for it. OPEC's chief has said that OPEC nations have lost 700 Billion Dollars USD because of low Oil Prices. Low Oil Prices,considering the artificially high prices that were prevailing then. An act ot Terror in Nigeria, problem in Russia or Venezuela, Embassy attacks in Saudi Arabia were all gud enf reasons for the price of oil to go up then,contrast that with today where even 2 production cuts by OPEC nations have not been able to stop the falling price of Oil.
Where has the "Fuel Guzzling" Chinese Dragon gone? What happened to India? the 2 nations who were cited as the main reasons in the media for the start of the upward crude rally. In reality none contributed in a major way, Cheap money which was made available through questionable polices of the FED along with the Iraq war which has made the region a hotbed were the major driving forces in my humble opinion and once the prices started to be pushed upwards, the OPEC nations felt wonderful.
Now the whole party has ended and ended in a very bitter fashion and with Obama not intent on continuing the Hunt for Weapons of Mass Destruction( just to remind readers that, that was the reason for the Invasion cited by Mr Bush) Oil seems to have got into this bear Mode.
Now every single negative report out of the USA and the rest of the world will push the price of Oil Down and it will be a huge challenge for OPEC to boost the prices of OIL now. They will try their best though, as all the nations had a lot of plans based on the money that they thought, they would be getting out of selling Oil at high prices.
But for the moment it seems like the efforts of OPEC are not going to yield much benefits and i personally believe it is very good for the world, as high prices means more Inflation.
P.S: This happy news has got no relevance for India though, the PM of India Dr Manmohan Singh has decided that Petrol prices will not be slashed as the Oil Marketing companies have suffered huge losses and now its recovery time for them. While I do agree that the Oil Companies suffered huge losses, one must remember that it was because of the poor policies of the govt which taxed and taxed and taxed Fuel for revenues. My Question is why should the people suffer even now when things are better?
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