Scratch James Bond, We Need Austin Powers

You've probably heard the news that Saudi Arabia is finally onboard with OPEC production cuts. They're not only going to cut now, they're also considering cutting again in December. And that's bullish for oil prices.

But don't ignore the big oil news on the other side of the world. Venezuelan President Hugo Chavez -- the Goldmember to Kim Jong Il's Doctor Evil -- is planning to take control of oil production joint ventures run by Exxon Mobil Corp. and ConocoPhillips.

As Bloomberg explains: Chavez said his government would seize four companies owned in part by Exxon, ConocoPhillips, Chevron Corp., France's Total SA and Norway's Statoil ASA. The ventures, set up before Chavez came to power in 1999, pump 22% of the nation's oil.

Well, I don't expect you to weep tears for Exxon or Conoco, two companies most likely to choke on their obscene profits. But like a row of dominoes, this has other implications.

• It could lead to a default on $1.6 billion in bonds.
• It will likely negatively affect the production of the companies that are taken over.
• It will make other oil companies leery of investing in Latin America.
• All this in turn, will put more pressure on the global bond market and oil prices.

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