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Well the price of crude not much affected that if at all by the death of Venezuelan President Hugo Chavez but it.
Regime that was friends with a Rana provided us with 13% of our imported oil.
Is now leader -- how will that affect our markets and our safety joining us now Spencer -- he is steel bond investments founder.
And CEO and -- and a sideshow O'Grady Wall Street Journal Americas editor thank you to you both married first feel like I've got to think.
That a world without Hugo Chavez from our perspective is a better place -- I think getting -- it -- like Chavez is a necessary but insufficient condition.
To change -- a -- but it is necessary and in a lot of Cubans would be very happy if the Castro's had moved off the -- each.
And that's nobody there's nobody to take his place in terms of the charisma and the ability to.
To get even if we under phony promises to get the support of so many of the poor people.
Well that's probably true but I think you should keep in mind that they already have the military dictatorship in place and area have control of the revenues so.
Motorola come on he's the vice president will probably be the president I don't expect a lot of change in the short run -- spreads.
Were you surprised that there was virtually no effect to god because of the death of over Travis in the oil markets today.
Yeah I was a little bit surprised one thing that this market stands out -- there's not many bargains on the market -- -- at all time highs but crooner -- has lost its -- for the years and so this is one of the few places that you have a little bit of bargain so I think it you'll probably see some interest coming here very shortly because this is just another element of uncertainty in the crude oil market -- -- -- one thing -- that Chavez did which was very unhelpful to the oil market oil production -- -- -- -- -- replace all the engineers.
And all of that the professional oil producers in in database -- their oil company with this political cronies who -- know a thing about.
How to pump oil out of the ground I mean they're still had a a modicum of engineers -- but basically he turned it into a crony capitalists operation and they're producing about a million barrels less today than they used to.
Right -- he completely politicized the company.
I he thinks that he can make up for that by bringing in the Chinese and other.
Sovereign wealth funds into the country but I think that so far we haven't seen the results of that and I think a big part of -- is.
-- made it very clear that property rights are not secure governments.
It since the price of oil has been coming down and if it comes down even further.
They're gonna have to produce a lot more -- to pay their bills to satisfy the political promises they've made.
Well even at current prices they're having lot of problems I mean they just had this big devaluation in January.
-- and they have with stood you know down -- in the price before.
I think the big -- for -- -- right now is not so much the price of oil but -- -- risk of hyper inflation.
Spencer let me let me put a hypothetical -- supposed.
That somehow with the death of -- press -- -- get their act together a little bit they they revamped fed events of their oil company they begin producing a lot more oil.
That is putting a lot more oil in the public won't that bring down prices more can we expect prices to come down if Venezuela produces more.
So part of it is that may affect WTI price in the typical crude oil that we see but what really WTI's pricing off is -- and so it would probably have very little impact on the Brent crude oil market in which is kind of keeping our gasoline prices high so even now I don't think it's likely at all that they would be able to bring on that type of crude oil onto the market.
Even if they debt I don't think you'd see hardly any relief.
From a -- outdated -- -- has another problem which is that if the Keystone Pipeline ever gets built.
The Gulf Coast refineries are gonna start getting more and more of their oil -- this heavy crude oil.
From -- and from the Bok and in North Dakota.
We don't need to buy from Venice that's a fallacy that Washington politicians have been -- for for a long time always worried that China's my cut off our oil.
For heaven -- he has a greater risk of us stopping buying their oil then about then then of him you know being able to punish us.
Either way let's just be clear about one thing for all of the talk that Chavez came out -- is mostly him talking about how we was so generous giving oil to the poor countries.
He -- give and of course wasn't his -- to give but he give oil to places like Nicaragua Nicaraguan eternity in the gasoline and sell it.
To the poor people Nicaragua for about twice the amount that we pay for -- -- -- and the rumor is that then he would share of the profits with these guys that may be where some of his two billion dollars is in Swiss bank account.
Well I think one of the problems that Nicholas -- might run into is he's an ideological ally of Cuba and they've been giving -- huge subsidy to Cuba.
But they're people in -- well particularly in the military who have a more nationalist view of what they should do what they're on the -- -- minute we have a lot of poverty here and our economy's deteriorating.
Really are -- wanting to give all the -- to Cuba.
Got to leave it at that -- and a -- O'Grady thank you are Spencer Pratt and good to see -- Spencer thanks a lot.
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