Iran President thinks oil prices are damn cheap at $115

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Apr 19 2008
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Some of you might be screaming – He got to be kidding! America’s next immediate target, Iran President Mahmoud Ahmadinejad declared that crude oil prices, now above $115 a barrel, are just too low. He further added “The oil price of $115 a barrel in today’s global markets is a deceiving figure. Oil is a strategic commodity that needs to discover its real value.” Crude oil futures already surged to a new trading record of $117 a barrel Friday following an attack on a key pipeline in Nigeria.

Despite analysts suggestion that today’s crude prices might have surpassed inflation-adjusted highs set in early 1980, the Iran President thinks otherwise. With heavy Iran President Mahmoud Ahmadinejad political tone, Mahmoud Ahmadinejad blamed Western industrialized nations of “selfishness” and “arrogance” in their quest for cheaper oil. The fact is U.S. weakening economy translates into weaker dollar which in turns push up the global oil prices

Ahmadinejad, whose country Iran has switched U.S. dollar to Euro in its oil transactions, further declared that U.S. currency is “a handful of paper” without any commodity support. This reminds me of the “Banana” money used as the currency issued by Imperial Japan during its’ occupation of Malaya, Sarawak, Singapore and Brunei. Regardless of the validity of the claim, in reality too many countries are holding the U.S. dollar as their reserves, so much so that it would be suicidal to replace the U.S. dollar in their daily business transaction.

Anyway I’m not surprise with President Mahmoud Ahmadinejad’s statement that the oil prices could goes up higher as I’ve wrote that it would be generous to have the black-gold even reaches the $130 a barrel.

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