Free market!!!!! What a joke...yeah, prices are at a RECORD HIGH, but we're gonna cut production. Yeah. http://www.iii.co.uk/news/?type=afxnews&articleid=6582330&subject=markets&action=article VIENNA (Thomson Financial) - Algerian energy minister and OPEC president Chakib Khelil said Algeria would welcome a cut in oil production at the cartel's output meeting tomorrow, as it expects to see a fall in demand. tfn.newsdesk@thomson.com afp/har/vlb
I guess "long ways off" will hit us once there aren't any more asset bubbles for the rats to jump ship from. I'll also disagree on the charge fear mongering. We're delaying our pain, and a lot of value is being siphoned off from the average American. If the investment scene makes up your main income, you aren't the average American.
i hear ya. though, i'm not sure what that means anymore. because rational analysis is, when price is at a record high, you produce as much as you possibly can.
yeah, but what i'm saying is that the price shouldn't be as high. inventories are very stout, and with recession looming, demand should taper. i guess you really have to look at what the dollar is doing to price.
OPEC has always been a bunch of greedy criminals. Once their countries adjust their spending to the high crude prices, they can't adjust to decreased revenues
bigtexxx, you and I both know that without OPEC the oil producing nations would not be using dollars as their currency for trade. The only reason the OPEC exists is because of the withdraw from the Bretton Woods agreement. Rich, oil producers in the Middle East and elsewhere are not going to sit around and let their wealth diminish because the dollar's value decreases.
That's complete garbage. The only reason OPEC exists is to ensure those countries can maintain steady cash flows to their populations and that one country doesn't just flood the market with oil and keep all the money themselves. It's a cartel full of a bunch of greedy criminals. Here's a quote directly from OPEC: "The principal aim of OPEC, according to its Statute, is the determination of the best means for safeguarding their interests, individually and collectively; devising ways and means of ensuring the stabilization of prices in international oil markets with a view to eliminating harmful and unnecessary fluctuations; giving due regard at all times to the interests of the producing nations and to the necessity of securing a steady income to the producing countries; an efficient, economic and regular supply of petroleum to consuming nations, and a fair return on their capital to those investing in the petroleum industry."
Their wealths will drop to nothing if they act outside of the cartel. Simply put, if they have a price war between one another then the money they receive will be less. Their nominal income will decrease, and since their real income is already decreasing, they will be worse off. I am not saying that OPEC is morally correct, but it makes sense for them economically. In addition, OPEC's mission statement is in step with my previous point. If the dollar can be revalued, then they must brace for the revaluations.
It's not about the dollar. They don't have to hold dollars - they can exchange those dollars with anybody at anytime. So if the dollar falls, they don't have to be stuck holding the bag with a bunch of dollars, but rather they can buy them cheaply using whatever currency they please next time they need to buy oil. You're reading way too much into them using the dollar to trade oil in. It doesn't matter since they can buy/sell dollars at their convenience.
This is true. The banks that got nailed are the ones tht ignored the risk analysis and went for the big buck knowing the .gov would bail them if they were broken. Many banks only invested lightly in sub-prime's because they listened to their analysts.
I think Arabian States still trade oil in dollars because they are as depenent on the US for security as the US is on them for energy. Secondly, the price of their assets depends on the consumption rate. If OPEC lets the price of oil get so high as to cause a world wide depression or to get nations serious about weening off of oil then the the price they get for their oil will go down below the current rate. OPEC manages prices to surf the sweet spot between current return and future asset value. $4.00 gasoline is just tough love, baby. We need it if we are ever going to get serious about alternative energies and energy efficiency. The end of the oil age will come sooner or later. It's better to be preparing before the end comes than at the last minute. But we won't. Greenhouse gasses, supporting islamo-fascist and dictators, a lack of any competive pricing and we still are lavish lifestyle junkies.
Yeah and your a genius. You were the one pumping bush and praising him for his great economic strategy.
English was never my good subject, and I haven't taken it since high school. How is this period in American history that much different that japan in the late 80's. They had a huge real estate bubble it crashed and they cut the rates. The second huge issue is this deficit spending. Reaganomics is voodoo economics. We need to end this war pronto. If we are able to contract the money supply for the dollar we will lower the price of oil. Without our currency depreciating so much oil would only be like 70 bucks a barrel.
LOL I'd love to see your oil price analysis that yields $70 a barrel if the dollar didn't depreciate. I'm waiting. At least you mixed in a few democratic talking points (voodoo economics, end the war now, economic hysteria)
