U.S. imposes sanctions against Russian state arms exporter

Because Chavez could not get parts to repair or replaice his F-16 type fighters, the Venezualan authorities have signed a deal with Russia, worth hundreds of millions of euros, to purchase Sukhois of the most advanced types http://www.itar-tass.com/eng/level2.html?NewsID=13081489&PageNum=0.

Found this story somewhat amusing. US is in no condition to impose sanctions against anyone, much less Russia. Hypocrits in US must be worried about losing market share.

Marko:
Good move by Chavez. Newest Sukhois are better than anything US has & cheaper to boot.

Benny:
Hope you realise that the current price of oil is a direct reflection of the current state of the economies of the west - and especially that of the US. So be careful of what you hope for.

With the oil prices dropping fast, Chavez will go bankrupt by the end of 2009 if he is not thrown out before. Of all the oil producing countries, Venezuela is the main one that almost exclusively relies on oil exports, and needs the oil to be high in order to meet next year's budget let alone buy Sukhois or whatnot.

Peter,
fair or not USA can place one on the banned list and they are toast. US sells too but this is probably a tit for tat for something Russia did. US for example is arming and training Kosova. Like I said, maybe it's not fair as US does the same, but its the reality.

Oil reflects the economy in part, but mostly it's the hedge funds that were forced to liquidate. Supply and demand didn't change to 100% between the $140 and $70 per barrel. The problem is that USA and EU have solid economies and can survive a recession, Russia, VE and Iran are based on oil and commodities only.

Peter,
I do not hope for anything. I was just merely stating the situation in Venezuela. Yes it is true that part of the falling price of oil is due to the global economic crisis, but oil was also artificially propped up price wise.

For the U.S. If the price of a barrel/oil stays at around $70, it will smooth the crisis somewhat, but for Venezuela, the price needs to be above $70 or $90(I do not remember the correct figure) if Chavez is to continue on his spending spree, or he is prone to going bankrupt after a year or so. These are not my words. I have read this in a couple of articles already, the latest was in NYTimes some days ago.

Pavaresi:
Hedge funds certainly played a part but main basis is supply & demand & driver behind that is 'peak oil' - hedge funds were playing on the 'trend' behind this. Days of cheap oil are coming to an end, so for those who can - enjoy the respite while it lasts.

As for the statement that US has a solid economy, you are kidding, right?

Fundamental problem there is debt & that has not been addressed. 'Printing money' is not a solution - just delays the inevitable. Remember how Greenspan was lauded when he stepped down. Is now being castigated for precisely those same actions.

Benny:
Just as I did not say you did, merely saying to be careful;)

Regarding oil price per barrel, personally am not tempted to predict what the price will be next year. Not even reasonably sure what it will be next month as OPEC has just announced a cut in production & Russia is talking about diverting excess production into a strategic reserve.

Meanwhile price is still falling - US$64 as I write this.

Interesting & unsettling times.

Because Chavez could not get parts to repair or replaice his F-16 type fighters, the Venezualan authorities have signed a deal with Russia, worth hundreds of millions of euros, to purchase Sukhois of the most advanced types http://www.itar-tass.com/eng/level2.html?NewsID=13081489&PageNum=0.

With the oil prices dropping fast, Chavez will go bankrupt by the end of 2009 if he is not thrown out before. Of all the oil producing countries, Venezuela is the main one that almost exclusively relies on oil exports, and needs the oil to be high in order to meet next year's budget let alone buy Sukhois or whatnot.

Found this story somewhat amusing. US is in no condition to impose sanctions against anyone, much less Russia. Hypocrits in US must be worried about losing market share.

Marko:
Good move by Chavez. Newest Sukhois are better than anything US has & cheaper to boot.

Benny:
Hope you realise that the current price of oil is a direct reflection of the current state of the economies of the west - and especially that of the US. So be careful of what you hope for.

Peter,
fair or not USA can place one on the banned list and they are toast. US sells too but this is probably a tit for tat for something Russia did. US for example is arming and training Kosova. Like I said, maybe it's not fair as US does the same, but its the reality.

Oil reflects the economy in part, but mostly it's the hedge funds that were forced to liquidate. Supply and demand didn't change to 100% between the $140 and $70 per barrel. The problem is that USA and EU have solid economies and can survive a recession, Russia, VE and Iran are based on oil and commodities only.

Peter,
I do not hope for anything. I was just merely stating the situation in Venezuela. Yes it is true that part of the falling price of oil is due to the global economic crisis, but oil was also artificially propped up price wise.

For the U.S. If the price of a barrel/oil stays at around $70, it will smooth the crisis somewhat, but for Venezuela, the price needs to be above $70 or $90(I do not remember the correct figure) if Chavez is to continue on his spending spree, or he is prone to going bankrupt after a year or so. These are not my words. I have read this in a couple of articles already, the latest was in NYTimes some days ago.

Pavaresi:
Hedge funds certainly played a part but main basis is supply & demand & driver behind that is 'peak oil' - hedge funds were playing on the 'trend' behind this. Days of cheap oil are coming to an end, so for those who can - enjoy the respite while it lasts.

As for the statement that US has a solid economy, you are kidding, right?

Fundamental problem there is debt & that has not been addressed. 'Printing money' is not a solution - just delays the inevitable. Remember how Greenspan was lauded when he stepped down. Is now being castigated for precisely those same actions.

Benny:
Just as I did not say you did, merely saying to be careful;)

Regarding oil price per barrel, personally am not tempted to predict what the price will be next year. Not even reasonably sure what it will be next month as OPEC has just announced a cut in production & Russia is talking about diverting excess production into a strategic reserve.

Meanwhile price is still falling - US$64 as I write this.

Interesting & unsettling times.