Iran Thumbs Nose At West Over Oil Demands - Forbes.com

Iran Thumbs Nose At West Over Oil Demands - Forbes.com

Iran Thumbs Nose At West Over Oil Demands
James McKeigue, 04.16.08, 4:06 PM ET

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LONDON - Iranian Oil Minister Gholam Hossein Nozari taunted America and Britain after the two countries appealed for OPEC to increase supply.

"Why should OPEC try to lower prices? ... Let America and Britain continue demanding," the controversial minister said to journalists outside a conference in Tehran on Wednesday.

His comments came on a day when crude oil futures advanced to yet another high, breaking $115 a barrel on the New York Mercantile Exchange before settling at a record $114.93.

America has tried to isolate Iran by imposing tough sanctions that hamper its oil industry. It is now asking the Organization of Petroleum Exporting Countries, in which Iran is the second-biggest producer, to raise output. It is an irony that cannot be lost on Nozari, though he claimed at the conference that other foreign states were willing to invest in Iran. (See: "Iran's Deal Is A Gas For Malaysia's SKS")

His hard-line stance is echoed by Iranian President Mahmoud Ahmadinejad, who has repeatedly called for OPEC to stop pricing its oil in dollars and list its products in a basket of currencies. (See: " Black Gold Back In Sight")

America does have allies in OPEC, chiefly the Saudis, but the organization's rhetoric has not changed in the face of a doubling in oil prices since early 2007. Even last month's state visit by George Bush to Saudi Arabia could not persuade OPEC to change its tune.

"Oil supply to the market is enough, and high oil prices are not due to a shortage of crude but rather it is because of the decrease in the dollar's value, shortage of refinery capacity and some political tensions in the world," said OPEC's secretary general, Abdullah Al-Badri.

It is certainly true that the weak dollar makes traders seek shelter in commodities.

"The dollar continues to weaken, and that suggests there might be a little more capital going into the commodities market," said Simon Wardell, an energy analyst with Global Insight. He did not believe that the supply-demand balance had fundamentally changed lately, and thinks prices will likely fall back with demand later this year. (See: " Oil Rises On Dollar's Slide")

As for Nozari, he does not restrict his battles to Western oil consumers. On Wednesday, he poured fuel on the flames of a long-running dispute with Crescent Petroleum of the United Arab Emirates, saying that it would have to pay the price he sets for a new gas deal.

R-Squared Energy Blog: Where Our Gasoline Imports Come From

R-Squared Energy Blog: Where Our Gasoline Imports Come From

Where Our Gasoline Imports Come From

I started this post almost a year ago, but forgot about it. But someone at The Oil Drum just said they wished they had more information on where our gasoline imports come from. No need to wonder, because the EIA publishes this information.

For 2007, our Top 10 importers of finished gasoline into the U.S. in thousand barrels were:

1. United Kingdom (Thousand Barrels) 25147
2. U.S. Virgin Islands (Thousand Barrels) 23590
3. France (Thousand Barrels) 11209
4. Canada (Thousand Barrels) 10605
5. Netherlands (Thousand Barrels) 10518
6. Norway (Thousand Barrels) 8406
7. Germany (Thousand Barrels) 8351
8. Russia (Thousand Barrels) 7387
9. Italy (Thousand Barrels) 7239
10. OPEC Countries (Thousand Barrels) 5516

Europeans demand more diesel. Since you get diesel and gasoline from the refining process, they get rid of their excess gasoline by sending it to the U.S. That helps keep gasoline prices in check. Take a look at diesel prices to see what gasoline prices might look like if not for the imports.

R-Squared Energy Blog: Where Our Oil Imports Come From

R-Squared Energy Blog: Where Our Oil Imports Come From

Where Our Oil Imports Come From

Following the theme of the previous post on where we get our gasoline imports, below is the list of our Top 10 sources of oil imports for 2007.

For 2007, our Top 10 importers of crude oil into the U.S. in million barrels were:

1. Canada 680.533 million barrels
2. Saudi Arabia 530.245
3. Mexico 514.48
4. Venezuela 419.841
5. Nigeria 394.856
6. Angola 181.215
7. Iraq 177.009
8. Algeria 161.755
9. Ecuador 72.138
10. Kuwait 64.306

Source: U.S. Crude Imports by Country of Origin

If you compare to the list for gasoline imports, Canada is the only country common to both lists (although "OPEC Countries" in total came in at #10). Any surprises on that list? I am surprised to see Ecuador in the Top 10. I would have thought Brazil would have come in higher than Ecuador (Brazil was 11th). For me, it was also noteworthy that Mexico and Saudia Arabia swapped places in 2007.

Total OPEC imports in 2007 were 1.97 billion barrels. Total non-OPEC imports were 1.69 billion barrels. Consider how dependent we are on oil, how oil prices have run up, and the resulting massive transfer of wealth out of the U.S. and into other countries.

This is a big reason that I am pessimistic about the U.S. economy recovering any time soon. A lot of discretionary income is disappearing from American pockets and ending up flowing into the hands of oil exporters. An obvious solution is to do more business with these oil producers, and offer them something of value that will pull more of that money back. (I am also basing many of my personal finance decisions based on the premise that this trend will continue).

Villainous Company: A Suspension of Contempt

Villainous Company: A Suspension of Contempt: "A Suspension of Contempt

'Duty is the sublimest word in our language. Do your duty in all things. You cannot do more; you should never wish to do less.'
-Robert E. Lee

Marvelous

321energy :: Liars, Wall Street & Your Gold :: Jim Willie CB

321energy :: Liars, Wall Street & Your Gold :: Jim Willie CB

The dirt on a lot --J. P. Morgan etc

Global warming rage lets global hunger grow - Telegraph

Global warming rage lets global hunger grow - Telegraph: "Global warming rage lets global hunger grow"

The mass diversion of the North American grain harvest into ethanol plants for fuel is reaching its political and moral limits.

	A demonstrator eats grass in front of a U.N. peacekeeping soldier during a protest against the high cost of living in Port-au-Prince

"The reality is that people are dying already," said Jacques Diouf, of the UN's Food and Agriculture Organization (FAO). "Naturally people won't be sitting dying of starvation, they will react," he said.

The UN says it takes 232kg of corn to fill a 50-litre car tank with ethanol. That is enough to feed a child for a year. Last week, the UN predicted "massacres" unless the biofuel policy is halted.

We are all part of this drama whether we fill up with petrol or ethanol. The substitution effect across global markets makes the two morally identical.

Land of Black Gold: Prisoners of the Sun.

Land of Black Gold: Prisoners of the Sun.

Globa cooling___ Sunspot activity