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To: knarf

Wrong, the price of oil is determined by the futures traders. That started in 1983 and is the bane of the oil industry. OPEC can influence it by adjusting production up or down, depending where they want the price to settle.

There is an estimated $10-15 premium now on pricing as a result of political unrest world wide. So oil would be about $80/barrel if Imanutjob and Chavez weren’t rattling their cages.

The oil companies would like nothing better than a 50-60 dollar stable price range on prices. They could make long range plans and stabilize their operations. Now it is feast or famine as it takes years to gear up once a bust hits and equipment is mothballed and people leave the industry. Hell, the last bust that hit the industry resulted in a lot of drilling equipment being sold for scrap. Chopped up and probably sent to China to be recycled.


34 posted on 11/22/2007 11:10:57 AM PST by biff
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To: biff
be kind to a simple mind ... how does it work?

OPEC decides to stop drilling or lowers production, futures traders see this, get nervous and ... then what?

37 posted on 11/22/2007 11:21:19 AM PST by knarf (I say things that are true ... I have no proof ... but they're true.)
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