OPEC is chitting bricks

[Ollie]

Looks like our predictions of 70 dollars a barrel is coming true.
Also looks like OPEC is trying to stop the slide with little or no effect.

http://www.ft.com/cms/s/0/417df05e-9555-11dd-aedd-000077b07658.html?nclick_check=1

 

[Pit Crew]

didnt the saudis leave opec? basically leaving them with almost no power.

 

[POLZIN]

HA HA ! greedy bastages !

 

[Ollie]

didnt the saudis leave opec? basically leaving them with almost no power.

yep, the Saudis pulled out of opec because some of the members want oil to be 120+ a barrel. The fun part is, opec makes up 40% of the oil producing nations out there and Saudia Arabia can make up ALL the difference they put out. When opec lost the Saudi's, they lost their teeth. The Saudi's think oil should be at 60-70 dollars a barrel. I think the saudi's are correct.

 

[Snowizard]

Tough times ahead for extravagant palace builders.

 

[6Mile]

Not to mention the man made islands shaped like palm trees...

http://www.palmsales.ca/

 

[WYO312]

I just hope the prices keep going down at the pumps. They are, but not as fast as they went up.

 

[Ollie]

I saw 3.31 a gallon on regular this morning.

 

[Rob1334]

3.19 here...


By the way, Dubai is the smart one, they realize they don't have countless amounts of oil under their sand, they are building a business Mecca to bring in money once the oil dries up. Look at the other oil rich areas, nothing to show for but a large sand castle for the prince. Hope all the others fall on their faces....

 

[summitpeaking]

actually giggled a little when I filled up yesterday. First time I have filled up for less than $3 all year.

 

[yardfarmer]

$2.97 gas $3.79 desiel here

 

[milehighassassin]

Anyone want to take a bet that prices go back up after November?

 

[skid]

Anyone want to take a bet that prices go back up after November?

If your boy Obama gets in it will for sure, he has no intention of drilling for oil even though he says he will right now!

 

[Ollie]

Anyone want to take a bet that prices go back up after November?

Actually, politics aside, I don't think so.
Heres my reasoning why.

The WORLD is headed for a recession. The countries that produce oil will be looking for income. OPEC only controls 40% of the oil production (not sure if that is true since Saudi Arabia dropped out). The other countries will be producing like crazy to try and capitalize on the oil income.

Even if the opec countries cut their production the price will continue to fall till the world economy get better. That and the opec countries are just as greedy as anybody else. They will say they are cutting production in an attempt to get the speculators to jump the price while they continue to pump and sell.

 

[PJ-Hunter]

I saw 3.31 a gallon on regular this morning.

3.49 for gas and 3.89 for diesel up in the High Country this week.

 

[PJ-Hunter]

$2.97 gas $3.79 desiel here

WOW! Even our red diesel isn't that cheap!

 

[Rubberdown!]

Problem is, for those of you not in the oil business....as the price per barrel drops, the companies drilling for oil will drill less, resulting in lower supplies, thus driving thus price back up,,,,SUPPLY AND DEMAND people.....It's all politics and big business, and we have NO control......!

 

[Diesel99]

OPEC has been making billions of dollars a day for decades that they can't even begin too spend. $150 $100 $50 it really won't matter. We are the one that are screwed, not an oil producing export country.
They basically made a killing on $140 is all.

 

[Ollie]

OPEC has been making billions of dollars a day for decades that they can't even begin too spend. $150 $100 $50 it really won't matter. We are the one that are screwed, not an oil producing export country.
They basically made a killing on $140 is all.

Not really.
Take Iran. They subsidize their gas something fierce.
They are having a hard time even at 120 a barrel to meet all the demands from the people. Iran has no real export other than oil. They import most of their gas.

Venizuala (wow I butchered that), has made so many cash related commitments they HAVE to have 120 a barrel just to meet the existing commitments. They have purchased a LOT of power in south america. If the price stays at under 90 a barrel for more than 6 months they are screwed.

Very few middle east countries have any other type of income other than oil. So when the price went up, the governments just started giving stuff away to the people to make them happy. When the price goes down and the governments can't keep giving stuff away, that is when the people get angry.

As long as oil stays above 60 dollars a barrel it is break even point for exploration drilling in the US (2006 figure). There will be a slow down, but it won't be a stoppage like you saw in the 70's when texas went bust and their economy crashed.

 

[Diesel99]

Not really.
Take Iran. They subsidize their gas something fierce.
They are having a hard time even at 120 a barrel to meet all the demands from the people. Iran has no real export other than oil. They import most of their gas.

Venizuala (wow I butchered that), has made so many cash related commitments they HAVE to have 120 a barrel just to meet the existing commitments. They have purchased a LOT of power in south america. If the price stays at under 90 a barrel for more than 6 months they are screwed.

Very few middle east countries have any other type of income other than oil. So when the price went up, the governments just started giving stuff away to the people to make them happy. When the price goes down and the governments can't keep giving stuff away, that is when the people get angry.

As long as oil stays above 60 dollars a barrel it is break even point for exploration drilling in the US (2006 figure). There will be a slow down, but it won't be a stoppage like you saw in the 70's when texas went bust and their economy crashed.

We in the western world are on the verge of financial catastrophe, I would most rather have OPEC's problems than ours by far.
PS a bank holiday might be in the works so I would have at least 7 days of cash on hand for purchases, food, gas, etc. Credit cards and ATMs won't work during a US wide bank holiday.