The Venezualan situation has everyone scared. There isnt any excess capacity in the world and Venezuala is rattling swords and threatening to shut down production. Opinions on Venezuala vary and you could almost suggest that its leaning towards communism or certainly socialism and democratic values are not present. You have a leader using oil profits to insure votes so that he can stay in power which isnt an ideal situation. On the other hand you have a leader sharing oil profits with his citizens rather than building palaces and trying to build an army.
I dont know what to think but Venezuala has everyone scared.
The growing demand for oil in China is inevitable in a country thats turning from a 3rd World Nation to an economic powerhouse. But hey we like cheap imports when we shop and establishing competition for oil isnt a problem for us. We import so very much from China that it shouldnt surprise any of us that China competes with us for oil.
Im not sure we can blame the current president for the demands in the oil market. Venezuala nationalized its oil fields long before Bush came into office. Our love of Chinese imports cant be blamed on George W. Weve handed the keys to the kingdom over to China.
Its stupid of us to want to hire Chinese workers to build us cheap stuff and then not expect them to want to buy cars and the gasoline that powers them. People work; they make money; they buy a car; they buy gasoline for it. We can hire Americans or we can hire Chinese and when we shop we hire the Chinese because they work cheaper and the cash register receipt shows the value of hiring the Chinese.
Its easy to blame the President but hes a minor pawn in the price of oil. Supply and Demand is what matters and Demand is up because of China and supply is uncertain because of Venezuala. Uncertainty leads to speculation and the buying of commodities contracts and the perfect storm of fear, speculation, high demand, and supply fears leads to $3 gasoline.
I think its totally unfair to blame the president. I can think of problems that are his fault but high oil prices arent among them.
Im completely scared that continuation of rising oil prices can derail our economy. The trade deficit is staggering and its rising with every increase in the price of oil.
Happy Motoring All,