As if Old European Countries did not have enough trouble just trying to keep their economies from crumbling and more than 90% of their people employed as a result of "socialism gone wild". Now they have to figure out how to deal with higher oil prices. Russia is pulling out for no better reason that good old fashioned capitalism.
You got to hand it to the Russians: At least there’re not blowing smoke up our collective youknowwhat. Unlike the Saudis, who are constantly assuring the world that they will keep up the oil supply to fuel the world’s needs, the Russian are telling it straight.
“Lukoil CEO Vagit Alekperov told the German business daily Handelsblatt, ‘We will ensure that Europe is no longer oversupplied with Russian oil.’ Mr. Alekperov went on to point out that new pipelines to China will take Russian, Kazakh and Azerbaijani oil away from Europe and lead to more expensive oil.
“Russian crude costs Europeans US$7 less per barrel than Brent North Sea crude.
The new outlets mean that this margin will shrink to about 50 or 70 cents. Lukoil produces more oil and gas than Kuwait and is the world’s sixth-largest oil company. Russian companies exported US$60.1 billion worth of oil in the first three quarters of this year, compared to US$59 billion in all of 2004.
Clearly, it’s a good time to own a Russian oil stock
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