Today many of the leaders that the West dislikes met in a single place. The fact that most of the South American leaders were in Ecuador was not a surprise. What is a surprise is that Iran’s Mahmoud Ahmadinejad was there.
This is one of those things that we as investors need to keep an eye on. I asked my sister what this means, and she said two things:
- There is a drive to get some discipline in OPEC. The leaders in OPEC are concerned about the falling prices. I can understand this because the oil leaders became drunk on high priced oil and with low prices a hangover is ensuing.
- The South Americans are driving towards a European Union type integration. The South Americans want a common currency and free trade deals with the EU.
For me it means we better get our butts into gear regarding alternative fuels! Alternative fuels is the only solution to keep OPEC at bay. I figure we have some leeway, but not much. I also figure IF something comes out of this meeting and if volatility returns to oil we are in for massive stock sell-off.