“Elite” robber barons trying to rip the rug out from under Russia and China
Crude oil: Oil is now cheaper than the barrel it comes in. Some are saying that it is because Iran is dumping cheap oil (even I have said this), but with the lowest grade of Canadian oil going for $8 a barrel and the premium stuff going for, well, I might as well say $20 because it will be there by the time anyone reads this, I think something else is at play:
I think the so-called “elite” robber barons are in fact trying to rip the rug out from under Russia and Iran. Why not? They bilked the world for over $100 a barrel for a very long time, and can now dump it cheap with all the money they made and blow the finances out from under those who are “not behaving” at this time. Russia actually needs oil money to fund its war machine, and it would also do Iran a lot of good to have it now – and those two countries simply can’t flood the entire market by themselves. Something else is at play, and I’ll call it economic war.
A reader has asked where I got the Canadian crude at $8 a barrel from.
My response: Not all oil is created equal. The most valuable oil is the stuff going for just below $30 a barrel now. This is called light crude, which refines to fuels and other useful products easily. The $8 a barrel stuff I mentioned is low-grade garbage from a tar sand dig that you’d be hard-pressed to sell as bunker fuel IF it could even be used for that – it might not even be that good. That type of oil, if it is going to become fuel, requires an extensive cracking process that burns a lot of fuel to begin with. So its value out of the ground is quite low. –Jim Stone