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Oil will go up ‘ballistically’ if unrest shifts to Saudi Arabia, says Marc Faber
INTERNATIONAL. Marc Faber the Swiss fund manager and Gloom Boom & Doom editor sees oil prices extending their bull run despite the 15% run-up this year alone.
In an optimistic scenario demand for oil will rise as the global recovery takes hold, and in a pessimistic scenario prices still go up if the Middle East unrest spreads and crude production is curtailed. In both cases, he says, you should be long energy and energy related shares.
Speaking to CNBC today, Faber said: ” I think long term you should be exposed to energy in either scenario….if you are extra bearish and believe that War World III is going to start soon, as I believe, or in an optimistic scenario”.
Addressing the fundamentals of the oil market, Faber said: “What we had over the last couple of years is essentially a reduction in demand from the developed world, the US, Western Europe and Japan, and continued growth in emerging economies.
“So, if you take a very optimistic view of the world, namely a global economic recovery, demand in the Western World will pick up and demand in the Emerging World will continue to rise strongly, so from a very optimistic point of view you should be long oil,” he recommended.
On the flip side, “in a very pessimistic scenario you have to assume that unrest will shift to Saudi Arabia and other countries in the gulf and at that stage the production is curtailed and in that case obviously oil will go up ballistically.”
Brent crude futures could hit US$200 a barrel if political unrest spreads into Saudi Arabia, Societe Generale said on Monday.
Under what the bank called Geopolitical Scenario 3, “unrest spreads to Read more…
Senate approves bill to strip public employees of collective bargaining
seattletimes
Wisconsin Senate GOP bypass Democrats to cut union rights
Republicans voted 18-1 Wednesday night to pass nonfiscal provisions of the budget-repair bill — including those that would eliminate or severely limit collective-bargaining rights for most public employees.
Republicans control the Senate but had been blocked from voting on the issue after Democrats left the state Feb. 17 to prevent a quorum. Instead, Republicans used a procedural maneuver to force the collective-bargaining measure through: They removed elements of Gov. Scott Walker’s bill that technically were related to appropriating funds, thus removing a requirement that 20 senators be present for a vote.
In the end, the Senate’s 19 Republicans approved the measure without any debate on the floor or a single Democrat in the room.
Walker issued a statement praising the action: “The Senate Democrats have had three weeks to debate this bill and were offered repeated opportunities to come home, which they refused.”
The fight over the legislation has drawn national attention, with unions calling it an attack on all organized labor and some GOP lawmakers and governors calling it a necessary step to control state spending.
“You are cowards!” spectators in the Senate gallery screamed as lawmakers voted. Within hours, a crowd of a few hundred protesters had grown to thousands outside the state Capitol in Madison.
“The whole world is watching!” they shouted as Read more…
Gaddafi Strikes At Oil Refinery, Escalating the War
Libyan government warplanes have struck an oil facility near the rebel-held eastern town of Ras Lanuf during a heavy bombardment aimed at driving out opposition forces trying to topple Libya’s leader Moammar Gadhafi.
The warplanes bombed the As Sidr oil facility Wednesday, causing a fire and sending huge plumes of smoke into the sky. There were no immediate reports of casualties.
Forces loyal to Gadhafi also shelled rebel positions west of Ras Lanuf, forcing the rebels to retreat. The oil port represents the front line of the rebels’ advance out of their stronghold of eastern Libya.
Libyan government forces also were tightening their siege of the western town of Zawiya, the closest rebel-held area to Gadhafi’s power base in the Libyan capital, Tripoli. Residents said Gadhafi loyalists were surrounding rebels holding out in Zawiya’s central square, using snipers and tanks in the assault.
In remarks broadcast on state television Wednesday, Gadhafi called on Read more…
Pace of polar ice melt ‘accelerating rapidly’: study
(AFP)
WASHINGTON — The pace at which the Greenland and Antarctic ice sheets are melting is “accelerating rapidly” and raising the global sea level, according to findings of a study financed by NASA and published Tuesday.The findings suggest that the ice sheets — more so than ice loss from Earth’s mountain glaciers and ice caps — have become “the dominant contributor to global sea level rise, much sooner than model forecasts have predicted.”
This study, the longest to date examining changes to polar ice sheet mass, combined two decades of monthly satellite measurements with regional atmospheric climate model data to study changes in mass.
“That ice sheets will dominate future sea level rise is not surprising — they hold a lot more ice mass than mountain glaciers,” said lead author Eric Rignot, jointly of NASA’s Jet Propulsion Laboratory and the University of California, Irvine.
“What is surprising is this increased contribution by the ice sheets is already happening,” he said.
Under the current trends, he said, sea level is likely to be “significantly higher” than levels projected by Read more…
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