OPEC does not have as much control as some might think... I only included part of the article, if you want to read all of it, go here: http://www.atimes.com/atimes/Global_Economy/JE06Dj08.html
just because he posted this article he supports opec? he probably doesn't wear a lapel pin either LOL
Please read more carefully, pgabriel. I asked him if he supported it. I did not say or assume that he supports OPEC.
As a consumer, it would be great if they didn't exist. But it makes sense that oil producers would try to control the sale/prices of their product and may be set an artificial price for it, but it's strange that they really didn't have much success on that front until very recently. They make about as much sense as the diamond cartels or any other 'precious' metal. Do I support them? Well, yes, I must since I do own a vehicle and it needs fuel. Do I root them on like I do the Rockets or the Astros or the Dynamo? Nope. I will say this, I wouldn't mind one bit if someone 'busts' their cartel, may be then we will see if it makes a difference (doubt it, individual states would still cooperate somehow to set limits on output, etc).
its not strange, because the control they have is through speculation. opec says they will cut production, and instead of having to wait till that lack of product becomes a real supply issue, the speculators have already driven up the price instantly.
For all we know it could be the terrorist biding up the price. Blow up a few pipelines get more money sponsor more terrorism. The sooner we stop using oil the better.
more bs NEW YORK — Oil futures rose to a new record near $124 a barrel Wednesday after the Energy Department reported an unexpected drop in diesel and heating oil supplies last week. At the pump, gas prices rose for the first time since last week. Light, sweet crude for June delivery hit a new record of $123.80 in afternoon trading on the New York Mercantile Exchange before retreating slightly to trade up $1.75 at $123.59 a barrel. The department's Energy Information Administration said in a weekly report that distillate fuels, which include diesel and heating oil, fell unexpectedly while gasoline demand rose slightly last week. Traders chose to focus on those numbers and shrug off crude inventories, which rose much more than analysts predicted, and gasoline supplies, which increased when analysts forecast a decline. "We've got heating oil pulling up the complex," said Jim Ritterbusch, president of energy consultancy Ritterbusch and Associates in Galena, Ill. June heating oil futures rose 9.44 cents to $3.4479 a gallon after earlier rising to a new trading record of $3.4524. Earlier, oil prices waffled as traders were torn between relief that crude and gasoline supplies are rising vs. worries about rising demand and falling distillate stockpiles. But the fact that prices didn't decline sharply signaled to some investors that the market was poised to rally, analysts said. "It shows you that this market ... at times just ignores bearish news," said Phil Flynn, an analyst at Alaron Trading Corp. in Chicago. Oil prices didn't react to the dollar, either, after it strengthened against the euro. The dollar's protracted decline against the euro and other foreign currencies has played a major role in oil's rise by attracting investors looking for a hedge against inflation. When the dollar reverses course and strengthens, the effect usually reverses, sending oil prices lower. At the pump, meanwhile, the average national price of a gallon of regular gas rose Wednesday for the first time since last week, adding 0.8 cent to $3.618, according to a survey of stations by AAA and the Oil Price Information Service. Gas prices are back within a cent of the record $3.623 a gallon set last week, and are expected to rise to an average of $3.73 a gallon next month, according to the latest Energy Department forecast. Some analysts predict prices could rise to a national average of $4 in coming weeks; prices are already that high in some areas, including parts of Hawaii and California. Diesel fuel also rose Wednesday, adding half a cent to a national average of $4.242 a gallon, within a penny of the record of $4.251 set May 1. While high gas prices are hitting consumers at the pump, high diesel prices are hurting them in grocery and retail stores. "We must pass some of these costs through to our customers, which ultimately translate(s) into higher prices on the store shelves," said Mike Card, president of trucking firm Combined Transport Inc., of Central Point, Ore., in Senate testimony on Wednesday. Gas prices tend to lag the futures market, and fell slightly in recent days due to a nearly $10 decline in oil prices last week. But crude futures have rebounded sharply since then, and gas prices are responding by also rising. Analysts and the EIA expect gas prices to decline over the summer after peaking in late May or June; that's the pattern gas prices follow most years. Of course, this is anything but a normal year — crude oil prices have nearly doubled in the past 12 months. "All bets are off if oil keeps going up," Flynn said. "Gas prices could keep rising." In other Nymex trading Wednesday, June gasoline futures rose 1.09 cents to $3.1164 a gallon, while June natural gas futures rose 17.6 cents to $11.326 per 1,000 cubic feet. In London, June Brent crude futures rose $1.92 to $122.23 a barrel on the ICE Futures exchange
hey pg for what it's worth when those numbers came out i wasn't sure how to react since they were pretty bearish for oil so ended up getting out of a trade that i was in that goes the opposite of oil. but then after i thought about it i figured that people might use these numbers as an opportunity to buy due to the major supply constraints around the world. so i ended up getting back short the same stock i was in for more shares and it ended up working out well. also, pretty much any reporter who writes about the market and attempts to decide what moved the market that day is an outsider who really has no clue. the reporter usually just picks a random event in the market and uses that to explain some sort of movement. bottom line is that this move wasn't something unexpected and the market is ignoring any sort of bearish news for energy prices. expect the market to maintain these prices and to really spike if there is any actual bad news.
robbie, I appreciate your expertise on the matter. I work with some energy traders and they honestly have no idea what's going on with crude, they specialize in natural gas. its good to get a trader's perspective
