Oil prices surge after Opec talks

Oil prices surge after Opec talks

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Oil prices have surged after cartel the Organisation of the Petroleum Exporting Countries (Opec) failed to back an increase in supplies which could have given some respite to UK motorists squeezed by high forecourt costs.
The 12-member group, which accounts for the production of around 40% of world supplies, had been expected to boost output in an effort to cool oil prices and take some pressure off the world economy.
But the cartel failed to reach agreement at the meeting in Vienna and will resume discussions in three months' time. Crude oil prices fell ahead of the meeting but later spike

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What a surprise?

Venezuela, and Algeria go sell their *SNIP* oil to someone else, and while we are at it, let it be known that they will not receive one more penny of help from the U.S. and not one more ounce of food either. Or we could be like them and sell the grain at $115 to $140 a pound. Give em some of their own medicine
Why do i feel this is about to become a much bigger problem


And now we can all get ready for yet another round of price hikes........

This is really wearing thin.

Bring on electric and Hydrogen cars and get this monkey off our backs


news.uk.msn.com
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Mod Edit: Profanity/Circumvention Of Censors – Please Review This Link.

Originally posted by Surfrat

Bring on electric and Hydrogen cars and get this monkey off our backs

news.uk.msn.com
(visit the link for the full news article)

Yeah i think so. But when this day will come, chickens will can fly.

We need an Apollo, or Manhattan, style project to develop nuclear fusion, and eventually convert to a hydrogen based economy and then tell OPEC to go *SNIP* themselves!

I remember Obama talking about an Apollo style energy program when he was running and I thought "sweet, he's gonna get it done" . Oh well, so much for that.

I really think if we put enough smart people in one room and dumped the money at them we could figure this out. It's not that far off. Many "rich" folks are investing in some private interests that are researching this right now, in the thoughts that they will beat the govt run programs in figuring out how to acheive nuclear fusion.

I watched a show that mentioned the UK alone spends more money on ringtones than the entire world does on fusion research. I can't imagine what the US spends on ringtones. Where the heck are our priorities!





Mod Edit: Profanity/Circumvention Of Censors – Please Review This Link.

Does OPEC really need to make any more money?
I mean at one point in your life if you have THAT much money you should just be like "whoa this is enough" to last me like 10 lifetimes maybe I should try to use some of this money to save the earth for all the damage I've done.

After all, what good is all that money when the world comes to an end?

Originally posted by LaTouffe

Originally posted by Surfrat

Bring on electric and Hydrogen cars and get this monkey off our backs

news.uk.msn.com
(visit the link for the full news article)

Yeah i think so. But when this day will come, chickens will can fly.

You know chickens can actually fly short distances. Just sayin.

Oil went up about 2%, thats hardly a surge. Oil will go back down again anyways. people on wall street bought it now then they will sell it off later. This is really not news.

I'm beginning to wonder if the OPEC nations are running out of oil? It's hard to get real numbers but I'm sure most of the OPEC countries are past peak production if not down to their last 25%. Their leaders know that once the oil runs out they will be instantly out of revenue. Obama could announce a draw down on the massive US reserves as a countermeasure any time, so its not like we are totally at OPECs mercy. Actually the Democrats might get a popularity boost if Obama pulled the draw down trigger a little later in the game..

www.myfoxchicago.com...

Anybody got hard numbers on reserves and such?

electricty in the uk has just gone up 20%... Peeps dont need anymore increases....

i remember back in the day a barrel of oil was 20 bucks
i also remember when i first got my license it cost me 89 cents a gallon.

opec is the bane of the worlds existence and i wish someone would invent a water engine

that ran on water altho the have and did and its called hydrogen fuel cells.

i wish one day this entire country would switch over to them and anyone else that wants to

and then opec can goto hell

opec days are numbered and one day they will become irrelevant.

and that day is when i laugh and give them the 1 finger salute.

Market manipulation by these commodity traders is getting OLD....

www.reuters.com...

Exxon Mobil Corp's quarterly profit rose a better-than-expected 69 percent.....

Sounds more like extortion instead of profits......

Originally posted by neo96
i remember back in the day a barrel of oil was 20 bucks
i also remember when i first got my license it cost me 89 cents a gallon.

opec is the bane of the worlds existence and i wish someone would invent a water engine

that ran on water altho the have and did and its called hydrogen fuel cells.

i wish one day this entire country would switch over to them and anyone else that wants to

and then opec can goto hell

opec days are numbered and one day they will become irrelevant.

and that day is when i laugh and give them the 1 finger salute.

edit on 8-6-2011 by neo96 because: (no reason given)

Eventually they will run out of oil and that means that the world will have a lot less of it, unfortunately in the mean time we do kind of need their oil. It would be nice to focus a lot less on the region and not have to deal with the people who hate us over there as much.

good !

lets look into electric, nuclear , solar, wind, geothermal, hydrogen, wave energy and kick the habit once and for all

85.24 million barrels of oil are produced each day.
I wonder what they do with the empty barrels?
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reply to post by Surfrat


You don't seem to know that your government actively cooperates with certain OPEC members and benefits of doing so. A brief introduction:

The crucial shift took place when Nixon took the dollar off a fixed gold reserve to float against other currencies. This removed the restraints on printing new dollars. The limit was only how many dollars the rest of the world would take. By their firm agreement with Saudi Arabia, as the largest OPEC oil producer, Washington guaranteed that the world's largest commodity, oil, the essential for every nation's economy, the basis of all transport and much of the industrial economy, that oil could only be purchased in world markets in dollars. The deal had been fixed in June 1974 by Secretary of State Henry Kissinger, establishing the U.S.-Saudi Arabian Joint Commission on Economic Cooperation. The U.S. Treasury and the New York Federal Reserve would allow the Saudi central bank, SAMA, to buy U.S. Treasury bonds with Saudi petrodollars. In 1975 OPEC officially agreed to sell its oil only for dollars. A secret U.S. military agreement to arm Saudi Arabia was the quid pro quo.

source

That's why no democracy needs to be brought to Saudi Arabia. Additionally, high oil prices means more petrodollars invested in the US economy:

The Unstated US Goal of Preserving Dollar Hegemony Over the Global Oil Market

Dominance of Middle Eastern oil will mean in effect maintaining dollar hegemony over the world oil economy. Given its present strategies, the US is constrained to demand no less. As I explain in this extract from my book, Drugs, Oil, and War (pp. 41-42, 53-54), the present value of the US dollar, unjustified on purely economic grounds, is maintained by political arrangements, one of the chief of which is to ensure that all OPEC oil purchases will continue to be denominated in US dollars. (This commitment of OPEC to dollar oil sales was secured in the 1970s by a secret agreement between the US and Saudi Arabia, before the two countries began to drift apart over Israel and other issues.)

The chief reason why dollars are more than pieces of green paper is that countries all over the world need them for purchases, principally of oil. This requires them in addition to maintain dollar reserves to protect their own currency; and these reserves, when invested, help maintain the current high levels of the US securities markets.

As Henry Liu has written vividly in the online Asian Times (4/11/02),

"World trade is now a game in which the US produces dollars and the rest of the world produces things that dollars can buy. The world's interlinked economies no longer trade to capture a comparative advantage; they compete in exports to capture needed dollars to service dollar-denominated foreign debts and to accumulate dollar reserves to sustain the exchange value of their domestic currencies. To prevent speculative and manipulative attacks on their currencies, the world's central banks must acquire and hold dollar reserves in corresponding amounts to their currencies in circulation. The higher the market pressure to devalue a particular currency, the more dollar reserves its central bank must hold. This creates a built-in support for a strong dollar that in turn forces the world's central banks to acquire and hold more dollar reserves, making it stronger. This phenomenon is known as dollar hegemony, which is created by the geopolitically constructed peculiarity that critical commodities, most notably oil, are denominated in dollars. Everyone accepts dollars because dollars can buy oil. The recycling of petro-dollars is the price the US has extracted from oil-producing countries for US tolerance of the oil-exporting cartel since 1973.

"By definition, dollar reserves must be invested in US assets, creating a capital-accounts surplus for the US economy. Even after a year of sharp correction, US stock valuation is still at a 25-year high and trading at a 56 percent premium compared with emerging markets."

But central bankers around the world do not expect either the US dollar or the US stock markets to sustain their current levels. As William Greider in The Nation (9/23/02) has pointed out:

"US economy's net foreign indebtedness--the accumulation of two decades of running larger and larger trade deficits--will reach nearly 25 percent of US GDP this year, or roughly $2.5 trillion. Fifteen years ago, it was zero. Before America's net balance of foreign assets turned negative, in 1988, the United States was a creditor nation itself, investing and lending vast capital to others, always more than it borrowed. Now the trend line looks most alarming. If the deficits persist around the current level of $400 billion a year or grow larger, the total US indebtedness should reach $3.5 trillion in three years or so. Within a decade, it would total 50 percent of GDP.

source


Therefore, Saudi-Arabia, the oil industry and the US government all benefit from high oil prices, but they want you to believe that all they want is low oil prices. It's a farce and makes one understand why no large-scale and viable alternative for oil will be implemented as long as the current system is in place.

You don't seem to know that your government actively cooperates with certain OPEC members and benefits of doing so. A brief introduction

Great information...Thanks!

Do what I did to get back at the oil pirates. get rid of your car or don't use it for anything except absolute necessity. The big rag on the human race is that we consume to much oil and exploit the environment to get it, Fine. If you really want to make the leaders of the OPEC countries suffer, and I do want them to suffer, then boycott them! When the oil dollars stop flowing, they have no power. It's really not that difficult. We had to do it back in the seventies when President Carter, the great IDIOT, let them do it to us. But, if you don't need to use the gas, then don't! Wear a sweater. Unplug your microwave when your not using it! If you have a fireplace, use that instead of your furnace. Make THEM pay for a change.

just use baby oil people haha!

reply to post by neo96


hell neo, i filled my VW for 3 bucks! cigs were a quarter a pack! women didn't wear bra's!

hendrix was still alive and nixon was on his way out!

OPEC will go down hard when sarah gets in.

sorry shameless promotion.

Originally posted by Surfrat

What a surprise?

Venezuela, and Algeria go sell their *SNIP* oil to someone else, and while we are at it, let it be known that they will not receive one more penny of help from the U.S. and not one more ounce of food either. Or we could be like them and sell the grain at $115 to $140 a pound. Give em some of their own medicine

Unfortunately, that typifies the governmental attitude of the developed western world as well...Sell us your resources at a price we determine and in a currency we determine, or we'll threaten you with trade tariffs/sanction/military intervention etc

Welcome to the distorted world of 'free market' economics