Chavez: el Nothifico

Oil Embargo: As I posted yesterday, and CNBC finally echoed this AM, Venezuelan crude is simply not refinable by any country other than us in the 2mln barrel per day category. Stratfor , one of the world's leading economic forecasters, weighed in this AM and pointed out that Chavez will suffer far more from an embargo than anyone else. Not only is his crude loaded to the gills with sulfur, it weighs more per barrel than other product hence it is more expensive to ship. This means that his crude, already the lowest priced in the world because of its quality, will have to be sold even cheaper to the other world customers, all of whom are 30-40 days away. So Venezuelan crude, already priced $30+ below the world price for other grades would have to have a delivered price near $35 below world price.

Late Add: almost everyone, except FOX and the some of the MSM, is now reporting the bluff. Even later: FOX (and Friends) still is reporting that Chavez poses a threat to our oil supplies at 7AM Eastern. FOX is getting bad, folks. Really bad.