low oil prices

On Christmas Eve, my car's tank was down to the half-full mark. I topped off the tank for less than $14.00.

I've been ruminating on Saudi Arabia's decision to allow oil prices to plummet, and a couple of things come to mind.

First, low prices for crude mean less money for ISIS*, which allows the Saudis to do some harm to the loonies without overt military action.

Second, the U.S. has "drilled, baby, drilled" its way to the top of the oil-export market. Low prices for crude are already making production from some American oil formations unprofitable**, at least for now.

And, the thing that inspired me to write this today, low oil prices hurt Vladimir Putin. Surely the Saudi royal family sees that Putin is a dangerous factor for instability amongst his neighbors, and the Middle East is only a couple of blocks away. If Russia gets bitten as a side effect of Saudi oil policy, even if that is not the original intent, it likely would not cause the Saudis to shed a tear.

Gas is going for $2.30/gallon at the station down the road from my house. Premium is selling for $2.70 there, and diesel is finally below $3 at $2.99.

*When ISIS first hit the news, a regular customer at work asked if I was secretly with ISIS. "No," I said, "I'm with Osiris."

**And I see that as a good thing. Save some for later, eh?

No comments:

Post a Comment