[Twilight]

I wonder what the Norwegian government is doing in this direction.

[lateStarter]

Not to get off-topic, but the decline in the US dollar works on a personal level (for some) too! Having moved out of the US a couple of years ago when the dollar was strong it allowed me to use those dollars to make lots of Polish zloty (PLN) in order to buy land, etc...

Now, I can pay off my remaining debt in the US for much less. I am tempted to wait a bit longer. For example, when I moved here, it took approximately 4 PLN to buy 1 dollar. Now, the rate is 2.67 for 1 US dollar. If I had used all my assets from the sale of my US property to pay off all my outstanding debts immediately, I would feel very stupid at this moment.

I understand now why some fear that the loss in value for the US dollar will lead to a firesale of virtually everything and anything when the dollar goes belly up.

If you haven't gotten out already, it might just be too late. At this point, unless you are fabulously wealthy and can afford to take the hit, or had already diversified into other markets, it might just be better to take your chances and ride out the storm.

[gg3]

Not to digress further, but I tend to believe Poland is going to come through this century OK. You have a strong culture and a population that has recently come through other rough times and succeeded. You have a solid industrial base, high-quality manufacturing, and diverse skills.

What's the forecast for climate change impact? And do you have viable climate-clean energy sources (wind, solar, nuclear)? What are your major water supplies? Seems to me those factors are also critical. (Maybe this should be shifted to another topic?)

[DantesPeak]

Gulf currency revaluation risk could ‘squeeze dollar further’Published: Saturday, 6 October, 2007, 02:25 AM Doha Time


Already, Qatar’s $50bn sovereign wealth fund has cut its exposure to the dollar by more than half to around 40% of its portfolio over the past two years.
To be sure, not everyone in the currency world believes in the dollar would be hit that hard by a Gulf revaluation.
“Even if they do de-peg, they’re not going to move in a speedy manner. They’re going to be slow and gradual and therefore this is not a near-term threat to the dollar,” said Divyang Shah, head of global FX research at Commonwealth Bank of Australia.
“If you allow too much flexibility or build expectations for too much flexibility, then you get more inflows and more inflation problems,” he added.
Still, some analysts are convinced the UAE will be the next country to revalue after Kuwait given high inflation and a diversified economy less reliant on crude. – Reuters

Gulf Times/Reuters

[mattduke]

Leaders of the Gulf Cooperation Council (GCC) have decided at their annual summit to keep pegging their currencies to the sliding dollar, Qatari Prime Minister Sheikh Hamad bin Jassem al-Thani said on Tuesday.

"Right now, the policy is to stick to the dollar... The GCC is concerned about the (weakening) dollar. No decision on the currency for the moment," he told reporters.

Yahoo News

[mattduke]

"Qatar is reviewing its currency policy and could revalue or drop the dollar peg as the booming Gulf state struggles to tame inflation while the US reduces interest rates to head off a recession."

ft

[cipi604]

Everyone has a scheme for getting rich that will not work.

[MrBill]

I would say it is about time!






What we need is more currency appreciation from oil producers and Asian manufacturers to reduce global current account imbalances and tame inflationary pressures!!

[dorlomin]

For all they have $90 and $100 oil, that 15% inflation rate means they cant be getting all that much richer.

Must be somewhat irksome. Oil for Euros seems less 'axis of evil' and more 'common sense' these days. But that is with the provisio that you have a floating currency (Id guess).

[DantesPeak]

This issue is still being discussed:

Producers to discuss "gas OPEC", Iran says
Reuters, Sunday April 27 2008


TEHRAN, April 27 (Reuters) - Representatives from natural gas producing countries meeting this week will discuss forming an OPEC-style grouping, an Iranian official said on Sunday, a move opposed by the United States and the European Union.
The Gas Exporting Countries Forum (GECF) meets on Monday in Tehran at the level of senior experts and deputy ministers.
"Regarding the gas OPEC, we have pursued that with the Russian side and other concerned countries and it will also be examined in (Monday's) meeting," Foreign Ministry spokesman Mohammad Ali Hosseini told a news conference.
Russia has the world's biggest gas reserves and is the biggest exporter. Iran has the second largest reserves but has been slow to develop exports, partly due to U.S. sanctions.
The United States and the European Union have said creating a body for gas, resembling the Organization of the Petroleum Exporting Countries, would endanger global energy security and make room for price manipulation.
Experts have said the gas forum is unlikely to become as influential as OPEC because gas deals are done on a long-term basis, rather than the spot system by which oil is traded.
Some gas contracts run for more than 25 years and they include formulas for smoothing out spikes in energy prices.
Gas producers such as Russia, Iran, Qatar, Venezuela, Nigeria and Algeria meet as part of the GECF. Their gatherings have spurred speculation the club could form the basis for an OPEC-style group.

Guardian-UK

[DantesPeak]

There has been much discussion of the increased diesel demand from India and China. Because inventory figures are not available from these countries, we didn't really know just how strong their demand was. With inventories now being depleted and causing shortages, it's clear that demand from China and India is for real and still increasing.

The worldwide shortage of diesel, if anything, is still spreading - hitting the oil rich Mideast too. As I have been mentioning for months, it is increased worldwide demand for diesel that is accelerating the price rise for oil.

Diesel shortage leaves truckers stranded
by Rob Corder on Friday, 30 May 2008
Woqod is being blamed for not supplying enough diesel to filling stations.The sole distributor of diesel in Doha is failing to get enough fuel to the filling stations of the city, causing truck drivers to roam the streets in search of just a few gallons for their rigs.
Traffic jams are being caused by long queues of trucks that wait in line at any filling station that has supplies.

Arabian Business

Fuel shortage to ease by Saturday, extra tankers pushed into service
Express News Service
Posted online: Friday , May 30, 2008 at 12:21:42
Updated: Friday , May 30, 2008
Pune, May 29 The ongoing fuel shortage in the city is likely to ease by Saturday. With Wednesday witnessing unusually high demand for fuel in the city and rural areas, the oil marketing companies (OMCs) have been getting extra vehicles from terminals in Mumbai to ease the situation.
A review meeting to address the sudden shortage created by “panic buying” in fear of escalation of prices, at the district collectorate on Thursday saw the oil companies maintaining that “supply from the Loni-Kalbhor terminal will become normal by Saturday.”

Express India

Major China cities hit by diesel fuel rationing
Reuters - Friday, May 30
BEIJING, May 29 - Petrol stations in at least three major Chinese coastal cities were rationing diesel on Thursday, drivers said, causing long queues of trucks and reviving the spectre of bigger fuel shortages that could stir discontent.
The shortages have worsened since last week, when stations in at least five provinces ran out of stock before the day ended, but have not yet reached the fever pitch of last October.
China has been plagued by sporadic shortages and rationing for several years, usually blamed on its big state oil companies holding back supplies to avoid losses by selling gasoline and diesel at artificially low domestic market prices in the face of rapidly escallating imported crude costs.

Reuters/Yahoo

[Starvid]

Fuel subsidies distort the market mechanisms in a really bad way...

[misterno]

Some countries have fuel subsidies and some has extra tax

I lived in a country where gas is $13/gl and yet people makes $1/hr. Oil is not going up because it is subsidized but because it is extremely unbelievable cheap. The more govts and people realize this fact the more oil will go up. This is inevitable.

[ohanian]

I lived in a country where gas is $13/gl and yet people makes $1/hr. Oil is not going up because it is subsidized but because it is extremely unbelievable cheap. The more govts and people realize this fact the more oil will go up. This is inevitable.

Let me guess

You are a Botswanian, aren't you?

Cheers

[TheDude]

Asian countries begin to burst the oil bubble - Telegraph

One by one, countries across Asia and the Middle East are being forced to abandon price controls on fuel and energy, bringing hundreds of millions of consumers face to face with the true market cost of oil. The effect has already begun to chip away at world demand and may ultimately trigger a slide in crude prices.
Egypt - the most populous Arab state - has raised petrol prices by 40pc, despite protests in Cairo. Sri Lanka lifted diesel and petrol prices by 25pc over the weekend. India may have to follow soon to prevent its trade and budget deficits climbing to dangerous levels. "The situation is alarming. We need to stem the rot," said India's energy secretary, MS Srinivasan.
Indonesia has raised petrol prices by 33pc in order to restore fiscal discipline (subsidies are 3pc of GDP). Taiwan has mooted a 20pc rise, and Malaysia is to peel back controls. While China has so far resisted calls for price freedom, the policy is becoming unsustainable. Analysts predict a change in tack after the finish of the Beijing Olympics at the end of August.

[Twilight]

I lived in a country where gas is $13/gl and yet people makes $1/hr.

That sounds like Turkey, whether or not that guess is accurate.

Power industry oil demand is not as dead as people might hope. While substitution is a no-brainer at these prices (see Italy), I pointed out last year that liquid fuelled generation has the advantage of being fast to build, however inconvenient that might be for everyone. Add the global infrastructure boom, and there you have it. Europe is going to be in an interesting position if this keeps up - a high proportion of diesel vehicles on the road and areas with import dependency.

[XOVERX]

The death of market capitalism approaches. 'Bout 5 years off.

[DantesPeak]

More from China:

5/29/08 Gulf News
GULF NEWS
Source: The Financial Times Limited May 29, 2008
China poised to increase imports
Beijing: Enhanced oil imports by China since the Sichuan earthquake on May 12, which has seriously affected world oil prices, is expected to continue for a much longer time than what was expected initially.
In fact, there are signs that Beijing might further increase its oil imports to meet rising power shortages that go far beyond the situation in Sichuan province.
Power plants across the country has been hit by a serious shortage of coal, which is expected to further push up China's oil imports.
The State Electricity Regulatory Commission has said that 32 power plants had been shut down for want of sufficient coal. ...
This decision is expected to cause long delay of many months, possibly more than one year, before electricity capacity reaches its original level in Sichuan.

More from India:

Friday, 30 May, 2008
Petrol shortage - tough days ahead
The situation is scary. There is every possibility of acute shortage of petrol, diesel and cooking gas. And, it's impact can be frightening. Already in Mumbai petrol bunks have put up "no stock" signs. I don't want to sound like prophet of doom, but we are looking at really tough days ahead. There could be massive queues for filling petrol, tempers could fray... The shortage of fuel can have a cascading effect -- food prices are already up, it could go further up. Vested interests who are looking for an excuse to create trouble might exploit the situation. Have the government and security agencies thought of this dangerous scenario? I have heard of food riots only African countries. (Source: Red Cross)
Why fuel prices are high and rising?
In India, we get petrol, diesel and LPG (liquefied petroleum gas or cooking gas) at a subsidised rate. With the price that we pay, the petroleum companies like Indian Oil, Hindustan Petroleum, Bharat Petroleum, etc will not be able to buy fuel from the international market. They currently sell petrol at a discount of Rs 13.97 a litre and diesel at a discount of Rs 20.97 per litre. They make up this loss with help from the government. This help is not available to private retail outlets. That's one reason, Reliance closed all its 1,432 petrol pumps. The IOC is said to losing Rs 320 crore every day, because of increased global fuel prices.

bpradeepnair.blogspot

FINANCIAL EXPRESS
The Indian Express Online Media Ltd
Source: The Financial Times Limited May 29, 2008
Are we heading for fuel crisis?
It's alarming now. There are reports of oil shortage coming in from some parts of the country. And what's worse is it's only the tip of the iceberg. With soaring international crude prices, bleeding oil marketing companies (OMC) Indian Oil Corporation (IOC), Hindustan Petroleum Corporation (HPCL) and Bharat Petroleum Corporation (BPCL) have sent out a missive to petrol pumps across the country that they will not import until and unless there is an emergency. Besides, these companies have decided to close down with immediate effect loyalty and discount programmes offered to consumers. On top of it, the present crisis has forced these oil marketing companies (OMCs) to immediately stop advertisements - both print and media. The OMC's inability to maintain supplies has forced to closure of some of the petrol pumps in various parts of Maharashtra. At present, petrol pumps in Nashik, Sangli, Kolhapur, Nanded, parts of Marathwada and Vidarbha have put up notice boards declaring that they were unable to provide petrol and diesel due to non-receipt of regular supplies from OMCs. In some cases, petrol dealers have started providing petrol and diesel in a limited quantity to vehicle owners against their requirement while some of them have been providing auto fuel after certain intervals. In Navi Mumbai, dealers have facing fuel scarcity and thus have been forced to sell it in a limited quantity to vehicle owners. Similarly, serpentine queues were seen in Nashik which is fast growing industrial city. Interestingly, Mumbai is for been spared by OMCs. There are in all 256 pumps in Mumbai and 2,700 pumps in rest of Maharashtra. Of the 2,700 pumps, 500 pumps have been either closed down or started rationing of auto fuel. Monthly sales of petrol in Mumbai pumps is of the order of 5.63 crore litreand diesel 4.60 crore litre. In the case of rest of Maharashtra, dealers sell 62.10 crore litre of diesel and 40.50 crore litre of petrol. State government sources said they would take adequate measures to avoid hoarding of auto fuel. An officer bearer of the petrol dealers association told FE, "This a reality that dealers have closed down pumps due to non-availability of fuel. Due to the stoppage of imports by OMCs, dealers are not getting their quota and they have no alternative but to close down pumps. This is causing inconvenience to the vehicle owners but dealers cannot help as they have to fuel to supply. In the sugar-rich Sangli, Islampur, Kolhapur region, some petrol pumps have been closed since last four days or in some cases vehicle owners have to satisfy on less quantity of fuel. " Ravi Shinde, president of Mumbai Petrol Dealers Association said "Vehicle owners in Mumbai so far have yet to face the brunt though the situation is alarming in various parts of Maharashtra. The closure of petrol pumps is largely due to the arm-twisting tactics adopted by the OMCs to drive their point in with the Centre.

[DantesPeak]

India:

Closure of petrol pumps in Imphal...
TSE probes the possible reasons
Source: The Sangai Express

Imphal, May 30: It is a fantastic co-incidence ! .
Even as speculations are doing the round that the Government may hike the price of petroleum products, following the global rise in prices of crude oil, most of the petrol pumps in Imphal have remained closed or are opened for only a few hours a day for the last couple of days.

Speaking to The Sangai Express, a source from the IOC said that following the global rise in the price of crude oil, it has been losing several crores of rupees and facing a huge deficit.

To offset the deficit, the IOC has been petitioning the Union Government to either raise the price of petroleum products or to offer them subsidies, said the source.

Sources said that the fuel shortage follows the now suspended economic blockade on the National Highways as well as the panic buying by some elements in barrels against the background of the speculations of hike in prices of petroleum products.

E-Pao

[misterno]

I lived in a country where gas is $13/gl and yet people makes $1/hr. Oil is not going up because it is subsidized but because it is extremely unbelievable cheap. The more govts and people realize this fact the more oil will go up. This is inevitable.

Let me guess
You are a Botswanian, aren't you?
Cheers

No, I was born in the US but raised in Turkey. Now happily living in Houston, TX which I call my hometown.