Unclear on the concept of global markets

Venezuelan President Hugo Chavez, who has threatened to cut off oil sales to the U.S., said reports that making such a decision would hurt his country’s economy are false, and that Venezuelan oil can be sold anywhere.

Well of course it can. And by the same measure the US can buy oil anywhere, including from whoever Venezuela sells it to. At any given time, oil trades at the same price worldwide.

One comment

  1. But it may trade in Rubbles on the Iranian Bourse as early as next week.

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