Articles by ecothrust at Technorati Headline Animator

Sunday, March 6, 2011

Who Is Smiling As Oil Spurts ?

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As Oil moves up over $100 / barrel, strangely the OPEC nations are not smiling. This time they are struggling to control the unrest and violence unleashed across the desert states by the winds of change. They are trying keep in control the people who have been largely poor, uneducated and voiceless. Unfortunately these nations are leaderless too and are bonded together not by democratic values but by forces of Islam. So the struggle and the transition will be long drawn. After the Tunisian Jasmine revolution, the Arab world has been seeing violence and rioting in several nations. It was not only Egypt but Libya, Bahrain, Oman and Sudan. Few of those nations are authoritarian dictatorships while others which are more liberal  and support an international lifestyle.

 Riding piggy back on fears of supply disruption  Brent oil spurted past $110 and WTI went past $100 per barrel.  This despite the fact that Saudi Arabia quickly increased supply to meet the deficits due to the Libyan problem  pushing  oil pumped to 9 million barrels per day. The Sheikh's at the Saudi Arabia who are normally laughing all the way to the Bank  when oil spurts and usually  procrastinating , reacted quickly this time around
and looked grim while doing so.

So who is laughing while oil spurts. Big Oil of course has been the happiest with the rise of oil prices. Exxon Mobil chalked up a massive  profit of $30.5 billion  as against $18.5 billion last year. Chevron profits nearly doubled to $19 billion, and   Conoco Phillips profits rose from $4.9 billion to $ 8.8 billion.  Next week we will get back on the others who are making great profits out of the oil price hike.



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