Crude Oil Brent

The predators from Riyadh

Yesterday, French economist Jean Tirole won the Nobel Prize in Economics for his work in understanding imperfect markets such as monopolies or oligopolies. Personally, Tirole has been a huge influence in how I view the world. His graduate-level textbook on Industrial Organization remains, to me, the standard in the field, even though it is getting…

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Citgo on the block again?

As pundits mull Venezuela’s big win in yesterday’s ICSID ruling on the ExxonMobil case (don’t miss this interesting comment from Venetexan), the Maduro administration continues to ponder what to do about Citgo. A few weeks ago, Maduro himself had suggested that the Citgo sale privatization was a no-go. But yesterday, Reuters said our friendly French bankers have asked for more…

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Revolution at 45%, and dropping

I concur with Setty: this talk by experts Daniel Kerner of Eurasia Group, Chevron’s Ali Moshiri, and our friend Francisco Monaldi of Harvard is well worth your time. It talks about the politics and the geology of oil in Argentina and Venezuela. The key part is Francisco’s estimate that the revolution needs the price of a…

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Venezuela’s encripted devaluation

An obscure document was published yesterday by Venezuela’s Central Bank (BCV), allowing PDVSA to sell the dollars it makes via oil exports to the BCV for deposit into an undeclared, secret fund at a more comfortable rate. Up until now, the rate that PDVSA got for its hard-earned dollars was the cheapest of the four…