Oil prices too low?

I was just listening to the radio and they anounced that OPEC was planning a meeting Dec 17 to discuss a cut in production to fight the sinking price of oil. I googled it and could not find a relevant current article, just this -

“We are very concerned about overproduction,” said Qatari Oil Minister Abdullah al-Attiyah.
While Opec’s first priority is to put a floor under a $90-collapse in oil prices to $55, Saudi Arabia for the first time in years identified a “fair” price – $75 a barrel.

article from november

Anyone else that can find any news on this would be appreciated. I do not know everything about the oil business and all that but I thouht it was not that long ago that the price was so high because of the massive shortage of oil? Now it is a problem because there is too much? I am a lil confused.

Whats a fair price for something they get out of the ground "FREE"? Of course there are production costs, but please, it was still free, Ma nature didn't charge them a dime for it........

A scare tactic. There is nothing wrong with the price being low. They only want to make it go up again so they can continue to reap the huge profits they have been making for the last few decades.


I say PFFT to those who complain about the price being too low. Just two months ago people were complaining about it being too high!


Make up your minds!!!! Take advantage of it being low and divert that money to other things instead of the gas tank!!!



Cheers!!!!

“We are very concerned about overproduction,”...

translated:
We are very concerned about recent slumps in the demand for our product, therefore not allowing us to milk every dollar out of it that we can. So we have decided to come up with a "fair price" for our product in order to ensure the continuance of record profits for both ourselves and our "business partners".

I recall seeing another recent article where they stated a desire to reduce or limit production itself. It would seem that one way or another they Will achieve their goal - higher oil prices.

Hmmm... set the price or control the flow... set the price or control the flow.. Win-Win either way, for them.

It really comes down to price conditioning. Just wait. Gas will be back up to 3-4 bucks a gallon in a few months. If you trace back the history of gas prices around election time, the price of oil always falls significantly.

You know, for the majority of businesses if you stayed in touch with competitors to set the price of your products equally to make as much money as impossible, they would call it a cartel and arrest those people for fraud.

www.answers.com...

cartel
1. A combination of independent business organizations formed to regulate production, pricing, and marketing of goods by the members.
2. An official agreement between governments at war, especially one concerning the exchange of prisoners.
3. A group of parties, factions, or nations united in a common cause; a bloc.

Investopedia Says:
The best known example of a cartel is probably the Organization of Petroleum Exporting Countries (OPEC).

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Cartels exist primarily in Europe, being illegal in the United States by antitrust laws.

Bit odd that we continue to allow foreign countries to legally do these things to us, when we would never allow our own companies to do the same(legally).

Would it surprise anyone here that a majority of gasoline is produced from natural gas condensate as well as other gassous condensates and not all from crude oil?


Well..it is.


It is another one of those little secrets that big oil doesnt want the masses to know about. Thats how they fool everyone and control the entire industry. It wouldnt matter how OPEC sets their production or price, we could break away from them at any time right now.

But since all our major oil corps have trillions invested over there, they wont break away from that for a very long time to come.



Cheers!!!!!

reply to post by RFBurns


Are you talking about propane? It comes off the natural gas pipelines. They use to just burn it off, and then one day they got the bright idea to bottle it and then they start selling propane.