Nawar Alsaadi

Who Ends Up With the Oil? We Do.

As long as oil is the backbone for economic growth, and as long as the US economy continue to grow while importing expensive oil, the net effect is a positive for the US economy, the US is exchanging dollars for oil, which is the life blood of the economic growth in this country and the world, those who think in terms of transfer of wealth forget that this oil is not just imported and burned in a statuesque, it is imported to power the growing engine of the US and world economy, perhaps the net benefit from oil is less today compared to when oil was at $20, but the equation is still a positive one.

Regards,
Nawar

Oil Prices, Global GDP, and Net Oil Exports

Your observation Mark is right on target, I believe many analysts focus on oil production rather then oil exports, while it is oil available for export that determine the oil price in the international markets and not oil production.

Often we see a decline in oil exports after a country production peaks, such as in the UK, Mexico and Norway, however a more troubling trend is the decrease of exports in countries with growing production such as Oman, due to high internal consumption, Oman oil production grew by 5.1% in the first five months of 2008, however oil exports dipped by 5.1% due to the economy growing at a fast 12.9% due to high oil prices:

www.tradearabia.com/ne...

A more significant player which experienced a dip in oil exports of late is Russia, Russia now is experiencing a flat to slightly decreasing oil production for the first time in 10 years, Russia has played a key role in supplying the world markets in the last few years, however flat to decreasing production will have a major impact on Russia’s oil exports, as internal consumption roars ahead, an example of that, is Russia becoming Europe biggest car market (ahead of Germany) for the first time ever, due to 40%+ car sales growth in 2008.

Regards,
Nawar