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VIENNA, Austria -- Shrugging off calls to pump more oil, OPEC ministers said Friday that output levels will not be increased out of fear that a softening global economy will translate into weakened demand.
Newsmax.com - OPEC: No Boost in Oil Output (http://www.newsmax.com/money/austria_opec_meeting/2008/02/01/69302.html - broken link)
VIENNA, Austria -- Shrugging off calls to pump more oil, OPEC ministers said Friday that output levels will not be increased out of fear that a softening global economy will translate into weakened demand.
Newsmax.com - OPEC: No Boost in Oil Output (http://www.newsmax.com/money/austria_opec_meeting/2008/02/01/69302.html - broken link)
Yea well that's just simple supply and demand in action.
Opec will pump out more oil at higher prices and less oil at lower prices.
If demand is softening oil prices are likely going to come down, because that's another supply and demand market.
Eventually growth will resume and raise prices do to more demand and OPEC will respond by raising productivity levels to meet demand.
Heh, glad I filled up yesterday even though I didn't need to. News like this will drive up oil prices. Ever notice that immediately after bad oil news, the price at the pumps goes up? You can set your clock by it!
It's so heart-warming to see our 'friends' the Saudis and Kuwaitis coming to our aid.
What's the old saying? "with friends like these I don't need uh,uh, uh........................enemies! Yeah! THAT's the word
I don't think the Saudi's can afford to pump more oil or lower the price. After all they are holding a large chunk of our debt and the only way to ensure that debt is paid or that they will assume more debt is by way of a juicy price for the oil.
I don't think the Saudi's can afford to pump more oil or lower the price. After all they are holding a large chunk of our debt and the only way to ensure that debt is paid or that they will assume more debt is by way of a juicy price for the oil.
If i'm readin this correctly let them use your logic and the price of crude would drop like a bug sprayed with off.
Again supply and demand. If they are stupid enough to flood the marekt with oil (let them) that the market is not demanding that much oil, that will lead to rapidly falling prices of a barrell of crude and that's the last thing OPEC wants to do. Steady declines they can live with but rapid declines are not in their favor in a global slow down.
They would rather be cautious, because if global growth slows so does global demand for oil and other energy. It is much better for them to reduce output during uncertainty than it is for them to release more and oversupply the market.
It is in their best interest. If they provide less output and we do not experience a global shut down than demand would exceed the avaiable supply and prices would raise. At that point OPEC would be willing to produce more output at higher prices. Conversely if they produced an oversupply it would take longer for them to make up the difference in falling prices once global demand increased. (maybe they go from 80 t0 60 then to 70 etc)
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Quote:
Originally Posted by TnHilltopper
I don't think the Saudi's can afford to pump more oil or lower the price. After all they are holding a large chunk of our debt and the only way to ensure that debt is paid or that they will assume more debt is by way of a juicy price for the oil.
And what debt does Kuwait owe the US for still being Kuwait?
If i'm readin this correctly let them use your logic and the price of crude would drop like a bug sprayed with off.
Again supply and demand. If they are stupid enough to flood the marekt with oil (let them) that the market is not demanding that much oil, that will lead to rapidly falling prices of a barrell of crude and that's the last thing OPEC wants to do. Steady declines they can live with but rapid declines are not in their favor in a global slow down.
They would rather be cautious, because if global growth slows so does global demand for oil and other energy. It is much better for them to reduce output during uncertainty than it is for them to release more and oversupply the market.
It is in their best interest. If they provide less output and we do not experience a global shut down than demand would exceed the avaiable supply and prices would raise. At that point OPEC would be willing to produce more output at higher prices. Conversely if they produced an oversupply it would take longer for them to make up the difference in falling prices once global demand increased. (maybe they go from 80 t0 60 then to 70 etc)
Quote:
Bush needs the Saudis to charge us big bucks for oil. The Saudis can’t lend the US Treasury and Citibank hundreds of billions of US dollars unless they first get these US dollars from the US. The high price of oil is, in effect, a tax levied by Bush but collected by the oil industry and the Gulf kingdoms to fund our multi-trillion dollar governmental and private debt-load.
Quote:
Originally Posted by burdell
And what debt does Kuwait owe the US for still being Kuwait?
Quote:
The US Treasury is not alone in its frightening dependency on Arabian loot. America’s private financial institutions are also begging for foreign treasure. Yesterday, King Abdullah’s nephew, Prince Alwaleed bin Talal, already the top individual owner of Citibank, joined the Kuwait government’s Investment Authority and others to mainline a $12.5 billion injection of capital into the New York bank. Also this week, the Abu Dhabi government and the Saudi Olayan Group are taking a $6.6 billion chunk of Merrill-Lynch. It’s no mere coincidence that Bush is in Abdullah’s tent when the money-changers made the deal just outside it.
Bush is there to assure Abdullah that, unlike Dubai’s ports purchase debacle, there will be no political impediment to the Saudi’s buying up Citibank nor the isle of Manhattan.
Now while I disagree with Greg Palast on more than a few things, I do enjoy his writing and I can respect the mans usually unique views and I found this recent piece of his rather interesting.
While I will most certainly concede that most folks here can run circles around my understanding of economics, this piece does make a good deal of sense and I would be interested in seeing some folks tear it apart as I am sure it will be.
OK, this is nuts. After I posted that uh-oh, gas prices will go up immediately since there's bad news, I had to go to the store. SURE ENOUGH! The price is 10 cents higher than it was over the weekend.
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