OPEC - Biggest Production Cut Ever
Discussion
Oil will go up on speculation alone. How high will it go and how long will it stay up? What are PH's opinions?
http://www.foxnews.com/story/0,2933,468284,00.html
http://www.foxnews.com/story/0,2933,468284,00.html
Edited by Jimbeaux on Wednesday 17th December 14:52
Headline here ( http://www.ft.com/home/us ) is that oil is falling due to the market believing the cut will not be enacted.
Skipppy said:
Headline here ( http://www.ft.com/home/us ) is that oil is falling due to the market believing the cut will not be enacted.
That is an interesting speculation, and not without precedence. OPEC wants to strike a balance between raising prices but not causing their customers to fall deeper into recession, thus, consuming less oil. My guess is that after and initial bump, prices will continue to slide.We do desperatly need a higher oil price. It's become uneconomical to drill in most of the non-OPEC countries. If the barrel price stays below like $45 for three years the industry in these countries will be ruined because of a lack of maintinance in the infastructure.
It would benefit us all if the price goes up, it would bring at least a little energy security for a little longer. When OPEC are the only producers, which will be the result of a low oil price, the word's energy security will be f
ked.
It would benefit us all if the price goes up, it would bring at least a little energy security for a little longer. When OPEC are the only producers, which will be the result of a low oil price, the word's energy security will be f
ked.Edited by Raffles on Wednesday 17th December 17:31
Raffles said:
We do desperatly need a higher oil price. It's become uneconomical to drill in most of the non-OPEC countries. If the barrel price stays below like $45 for three years the industry in these countries will be ruined because of a lack of maintinance in the infastructure.
It would benefit us all if the price goes up, it would bring at least a little energy security for a little longer. When OPEC are the only producers, which will be the result of a low oil price, the word's energy security will be fked.
My state, being a large oil producer, would like a higher price to help our budgets, but that would raise fuel costs. Double edged sword sort of.It would benefit us all if the price goes up, it would bring at least a little energy security for a little longer. When OPEC are the only producers, which will be the result of a low oil price, the word's energy security will be f
ked.Edited by Raffles on Wednesday 17th December 17:31
Jimbeaux said:
anonymous said:
[redacted]
Exactly. That is what various articles are saying about other oil nations as well. Many agree upon a cut then cheat around it. Not an uncommon practice.Jimbeaux said:
Raffles said:
We do desperatly need a higher oil price. It's become uneconomical to drill in most of the non-OPEC countries. If the barrel price stays below like $45 for three years the industry in these countries will be ruined because of a lack of maintinance in the infastructure.
It would benefit us all if the price goes up, it would bring at least a little energy security for a little longer. When OPEC are the only producers, which will be the result of a low oil price, the word's energy security will be fked.
My state, being a large oil producer, would like a higher price to help our budgets, but that would raise fuel costs. Double edged sword sort of.It would benefit us all if the price goes up, it would bring at least a little energy security for a little longer. When OPEC are the only producers, which will be the result of a low oil price, the word's energy security will be f
ked.Edited by Raffles on Wednesday 17th December 17:31
I think a high oil price is worth the cost, just to keep the non-OPEC countries in business.
tinman0 said:
Jimbeaux said:
anonymous said:
[redacted]
Exactly. That is what various articles are saying about other oil nations as well. Many agree upon a cut then cheat around it. Not an uncommon practice.Edited by elster on Wednesday 17th December 17:39
anonymous said:
[redacted]
The way I look at it, Russia is screwed one way or another. When they had the spat with the Ukraine over gas, it affected Germany, and now the Germans (and EU) are looking at alternatives to Russian fuel. Russia seems more and more incapable of stepping to the front of world affairs in a sensible way. Instead it takes a hammer to crack a nut, thinking that they look powerful on the world stage when just come across of brutish thugs who are incapable of rational thought.
This is like an episode of Spooks as far as conspiracy theories are concerned, but I would not bet against some of the following things happening:
-a major terror attack on the US or EU
- unrest in Asia
-arab / israeli relations getting worse.
-something dodgy out of north Korea.
Any or a combination of these events would further delay a economc recovery, but it would also spike the oil price. And there are plenty of vested interests to see that happen.
I expect enough bad things to happen to push up the oil price without breaking the west.
And the Russians will be there somewhere.
-a major terror attack on the US or EU
- unrest in Asia
-arab / israeli relations getting worse.
-something dodgy out of north Korea.
Any or a combination of these events would further delay a economc recovery, but it would also spike the oil price. And there are plenty of vested interests to see that happen.
I expect enough bad things to happen to push up the oil price without breaking the west.
And the Russians will be there somewhere.
toppstuff said:
For reasons already posted here, I don't think OPEC has as much impact on the oil price as they think.
The implosion of the global economy and the destruction of the dollar are forces too powerful to stop oil prices sliding IMO.
Actually, the Dollar has been rising, which is one of the factors contributing to the decrease in oil prices.The implosion of the global economy and the destruction of the dollar are forces too powerful to stop oil prices sliding IMO.
Jimbeaux said:
toppstuff said:
For reasons already posted here, I don't think OPEC has as much impact on the oil price as they think.
The implosion of the global economy and the destruction of the dollar are forces too powerful to stop oil prices sliding IMO.
Actually, the Dollar has been rising, which is one of the factors contributing to the decrease in oil prices.The implosion of the global economy and the destruction of the dollar are forces too powerful to stop oil prices sliding IMO.
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