
As if major parts of Europe are not already living a Damoclean existence, the continent now figures that the time is ripe to introduce an embargo on Iranian oil to curb the nation’s nuclear ambitions, effective in July. There are a few reasons why Europe may have started something more irrational than its suicidal austerity program.
First – Iran may decide to help Europe’s self-euthanization by immediately canceling all existing oil contracts without giving Europe lead time to source alternatives. I’m sure your response is “NOOOO! Iran would NEVER cut off its nose to spite its face. They’re not that dumb.” Imagine the look I’m giving you right now.
Second – since Greece is already dying, I suppose Europe wants to amputate it by risking higher oil prices and increasing the failure rate of Greek businesses…
Third – Greece is not the only European country approaching death spiral status. And the last time I checked the list of requirements for Western Capitalism’s survival, unobstructed access to an abundant supply of inexpensive oil ranks at or near the top.
Fourth – an alternative supplier that is not BS-ing – more on that later – will look at Europe’s vulnerable state and increase the price of oil. Kinda like the convenience store at 2am with owners who know that every other neighborhood store is closed. $20 and that box of condoms is yours…
Fifth – back to reason #4 for a moment, Asian nations do not currently have an embargo on Iranian oil. And guess who will buy Iran’s oil, only to sell it back to Europe at a sky-high price?
Fifth – on the subject of BS, I’ve heard that Saudi Arabia is willing to fill any supply gap left by Iran. I’ve also been hearing for years that Saudi Arabia is full of crap since they’ve already reached peak oil. We will soon learn the truth, won’t we? Europe had better hope Iraq and Russia have some of the slick stuff to sell…
song currently stuck in my head: “feel me” - cameo

