For reference:
Posted on 12/01/2014 10:08:44 AM PST by rellimpank
In theory, I would agree: no government meddling/muddling in the marketplace. But the reality is that OPEC is a long-running price fixing conspiracy, created and maintained by one of the world’ ugliest coalitions of corrupt governments, that has persisted for decades because lack of will and broader geopolitical considerations get in the way of disciplining the thieves. OPEC currently faces an existential threat from the combination of expanded conventional drilling, fracking and biofuels. As it has done several times before, OPEC is now suppressing the price of oil to drive the competition out of business. The moment this is successful, OPEC wll close the spigots again, and the price will march back north of $120. We have them on the run. Let’s keep them on the run.
OPEC hasn't increased production this year. It appear the complain against OPEC by many is that they will not cut back their production to offset our gains.
Yes. They have a history of agreeing to hold back production to raise prices. Last week, they could not agree amoung themselves to do that. And many here seem to be complaining that they won't do, what most complained about them doing in the past.
“Are you thinking the amount of oil produced should go up with the decline in prices?”
I’m thinking that OPEC’s intention if for supply to drive prices by removing their own production restrictions...and futures took a big hit based on that possibility....but I’m also thinking that in reality Saudi and/or OPEC production will not increase much (since they are already stabbing each other in the back and near max production anyway).
Worldwide production may drop...in anticipation of this anticipated OPEC increase...but I’m skeptical OPEC really will increase too much.
Actually, they didn't decide to do any changes at all. The market reacted do to expectations of a cut that didn't happen.
I guess its a matter of how its worded. OPEC has been exceeding its ceiling almost monthly for the last 3 years. So a decision to not cut output could be seen as just that...or it could be seen as a signal that OPEC is ok with exceeding its own limit for the foreseeable future.
But I understand the point - our reaction to supply and demand should not be to ask a competitor to reduce supply.
...but, if that competitor has a long standing history of market manipulation and price fixing...and can accomplish those goals again by doing nothing, its a little suspect. Like I said before, I complain about anything OPEC does - just sitting at a table together is an attempt at internationally cornering a market.
Well, Obama can kill it with low crude prices,
but they can go in with the EPA and point guns at their heads to make them stop.
I think they see the threat of alternative fuels reaching the market and are trying to dump the price to close down the competition. If they are doing a little public squabbling in the process, don't be fooled.
Please don’t misunderstand me, I’m not justifying or supporting OPEC. I just accept them as a reality of the industry.
But what I greatly do not want, is the US government to get deeper into manipulating pricing.
For reference:
—yep—(usually the only poster whose information on oil threads is worthwhile is Thackney—I always look forward to his contributions)
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