Oil Price Scam Revealed

[onlyrotax]

*yawn*

OPEC is what drove the prices up, period.
The relativley tight margin between global supply and demand is what allowed any market manipulation to take place. And I am not really convinced there was any. People paid for $4.00 a gallon gas, so that's what the price was. That's called capitalism. Artifically having the federal government set price caps might as well be considered communist.
OPEC dictates what the global supply will be, the market dictates demand.

If the idiot politicians in this country were serious about doing things that benefit the US economy as well as helping us beome less dependent on OPEC, then then roughly 1/2 of Washington would be doing exactly the opposite of what they have been doing for the last 30 years, and trying to find ways to make it as cheap as possible for US operating companies to operate DOMESTICALLY as opposed to doing everything they can to make it as impossible and expensive as they can to drill here.

zzzzzzzzzzz------zzzzzzzzzzzzzzz----snore--------zzzzzzzzzzz----huh ?, what? oh!,
So if OPEC controls the price of oil then they must have tripled production to get it to go down to its current price cause I doubt if demand has dropped off that much, bet they're glad they did that !!! zzzzzzzz----zzzzzzzzz-----zzzzzzzzz------zzzzzzzzz No, I think the speculators got their behinds burned and now the price is being determined by a normal market that responds more to supply and demand and the occasional mideast threat of military action.

 

[justadude]

hahahhaa reps!!

Ignore the subtitles.

http://www.youtube.com/watch?v=DMiMc3HrY4Q

 

[Dogmeat]

zzzzzzzzzzz------zzzzzzzzzzzzzzz----snore--------zzzzzzzzzzz----huh ?, what? oh!,
So if OPEC controls the price of oil then they must have tripled production to get it to go down to its current price cause I doubt if demand has dropped off that much, bet they're glad they did that !!! zzzzzzzz----zzzzzzzzz-----zzzzzzzzz------zzzzzzzzz No, I think the speculators got their behinds burned and now the price is being determined by a normal market that responds more to supply and demand and the occasional mideast threat of military action.

I'll say it again: OPEC has more sway in and of itself than any other factor artifically setting the price of oil. When world demand drops off severly as it has, there is a surplus. The demand has fallen off greatly in 6 months, and OPEC has struggled to cut production as quickly as they would have liked to have.

I will state again, prices are driven by supply and demand. The tight margin between supply and demand , demand having been ~1million bpd more than the given supply was for the last several years, at least as far as I could tell, due in no small part to OPEC, is what allowed the "speculation" to take place, traders who were not even traders, but entities investing in comodities futures like universities and banks and whatnot (read people who were trading in oil but never even took deliver of or shipped oil) were all getting into the game to make a quick buck.

So, back to what I was saying, if you noticed how rapidly demand dropped off, so ultimatley did the price, and OPEC is, as usual, trying to alter production to effect the price. They have not succeeded thus far, but rest assured, as the economy recovers we're going to go right back to paying more for gas.

Is it going to be as rampant as it was? No, it won't be as bullish, but one day before any of us would like, yes, we will be paying $4.00 a gallon for gas.

The bottom line is, supply and demand controls the price. Period. Now, what alters and effects supply and demand? There are hundreds if not thousands of global economic and political factors there. But as far as "why was oil so expensive", it was because of the tight margin between supply and demand allowing comodities traders to do what they did.....

What, were they just supposed to say "Oh well even though we can make $100/bbl of oil we'll just trade it at $50 so everyone feels good"?

Right ...

 

[Perk]

OPEC is what drove the prices up, period.

but if that is true, and they really were capeable of doing that, wouldn't they being doing something today to at least get it back up around 60-70 a barrell?

 

[Dogmeat]

but if that is true, and they really were capeable of doing that, wouldn't they being doing something today to at least get it back up around 60-70 a barrell?

They aren't?

Depending on what news source you read, there is a surplus right now and they're having trouble figuring out where to store it...

But you guys have to understand, you can't just shut off and turn an oilfield back on .... That can severly delimit the overall production of your well, at least unelss you monitor certain varaibles very closley. There's a lot of engineering that has to go into place to effect that decision as well, I'm sure most of that they've solved, but it's not always technically just as simple as on/off at least with regards to how much life and hence $$$ that can cost you in the long run in a given field.

 

[Dogmeat]

All I know is, everyone wants the "silver bullet" as far as who to blame for high energy prices. The politicans milk this for all it's worth, but the bottom line is ... It is such a complicated issue with so many contributing factors, there simply ISNT a "silver bullet" ... that much is for sure. OPEC, as I've said for the billionth time, has more control over the price of oil than any other single entity in the world ... I don't consider world demand, which is direcly proportional to the world economy, a single entity I guess.

But what I find appalling is people ***** and piss and moan about how much oil costs, especially in today's world economy, then they go and vote for politicians who do everything they possibly can to thwart us producing the **** for ourselves forcing us into being dependent on hostile nations....brilliant

 

[Perk]

Dog, not doubting you, I also think that OPEC can control the price, but am wondering today if they really could, would they be letting oil trade at < $40 a barrel.