Posted on 12/14/2014 1:42:51 PM PST by Signalman
OPEC won't rush to cut oil production even if prices fall as low as $40 per barrel, one of the cartel's members said Sunday. The energy minister for the United Arab Emirates told Bloomberg at a Dubai conference that the middle eastern oil producers believe "the market will stabilize itself."
"We are not going to change our minds because the prices went to $60 or to $40," Suhail Al-Mazrouei said. Even as it has watched prices dip, OPEC declined to cut back on production at its November meeting. Some observers had expected a production cut to boost the price of crude. Oil prices have tumbled 40% this year and are now trading below $60 per barrel, a five-year low. Gas prices have come down, too -- the U.S. nationwide average was $2.60 on Sunday. In some parts of the country, gas is below $2.
(Excerpt) Read more at money.cnn.com ...
Bring it! Let’s see what happens.
For the love of Noah Webster; one is scared BY or AFRAID of.
They meant to type a-scared.
The Oil bloodbath continues in less than one hour from now, and all indications are that it will slide even further.
18% of all “High-Yield” US Bonds are in Oil companies and oil exploration.
“the market will stabilize itself.”
He put down is copy of Mein Kompfe and said, “Hayek! Oh she’s pretty! Wait. This isn’t about Salma, but it’s interesting.”
OPEC may not be scared of $40 oil, but the Russian Federation sure is. And maybe not all the OPEC nations are on board, like the situation with Venezuela, as their only source of income dwindles to WAY less than their cost of production.
The real objective was and is to shut down fracking as a technique of oil recovery. It may be possible to reduce the cost of using that method, which in the long run would be a good thing, making much more of the world less dependent on foreign sources of oil, but on the short run, many of the facilities now drilling in shale beds will simply close up shop for the duration.
Shale beds are much more widely distributed geographically than actual pockets of recoverable crude and natural gas. The real breakthrough will be in the recovery of Methane Hydrate from the ocean floor by economical means.
"Oh great Sultan, it's been two days since you've fed the people after the price of oil crashed, and we have visitors..."
Significant oil price drops bring out the animus and weapons, at least for threats. Every member has a jealously guarded secret about what their internal economies need the commodity price to be at. Unfortunately, that secret is almost as open as the sky because most OPEC countries have a history or are currently working with the major international oil producing companies (Shell, Total, BP, Exxon etc.) and they KNOW their costs and the host country's pricing.
Saudi Arabia has the dominant hand here as it is controlled by a single family, Ibn Sau'ud, and their enormous reserves cost far less to tap than anybody else! This oil price down spiral will only end when they curtail their production. That will only happen when IRAN and ISIS are humbled and if Russia, Venezuela and others are hurt, its a hard world and they'll smile behind their hands.
Some US drillers are already going bankrupt and that is a shame, but it has happened before and will happen again. I recall a joke from the 90s that may be making the rounds again if this trend keeps up. What is the difference between a seagull and an oil engineer? A seagull can still make a deposit on a BMW!
If OPEC doesn’t reduce production prices will drop further and benefit consumers.
If OPEC does reduce production they’ll be the ones missing out on the revenue and the non-OPEC nations will most likely make up the slack and enjoy slightly higher per-barrel revenues while still getting cheap oil and gas to consumers.
Either way, I’m good with low fuel prices. And if low prices are combined with more domestic production and fewer dollars shipped to muzzie countries, that’s a bonus.
The energy minister for the United Arab Emirates told Bloomberg at a Dubai conference that the middle eastern oil producers believe "the market will stabilize itself."
Not to worry folks;
Once they drive out all those new upstart American oil companies that have been doing well for the last couple of years, prices will go up.
Of course our masters in Washington conspire with them to do the same thing.
Less money for Putin.
Less money for Iran.
Less money for Venezuela.
Less money for terrorists.
All very, very good things...IMHO.
Oh...and more money in my pocket.
But it is common knowledge that it is perfectly proper English for one to be "skeered" of something.
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