, OPEC decides to curb overproduction: Financial News - Yahoo! Finance

 

yeah,heard that on the radio this morning. they don't want oil to go below $100 a barrel. guess that kicks the supply and demand theory right in the can doesn't it???

 

That has nothing to do with debunking supply and demand. Sure, it's underhanded manipulation of the supply, but that's how it works. OPEC limiting production changes the supply curve. The interesting thing to note is that when the price goes up, OPEC nations tend to cheat on their production quotas, producing more than they are "supposed to produce".

Here's a good write-up on the subject (in general terms, not related to oil):

Supply and demand - Wikipedia, the free encyclopedia

Jason

 

demand is going down,price of oil should also go down. Not down to a certain point,then they decide it has went down far enough,so they limit the supply available. that is total BS.

 

The sad thing here is that the U.S. wets it's shorts every time OPEC breaks wind. That speaks volumes right there.

 

They cut OVERPRODUCTION, they didn't actually cut production numbers.

 

OPEC isn't much different than GMC and Ford. Demand goes down, the price goes down somewhat, but then so does production. They can't keep building all the cars they can, and cutting the price so that they all sell, sooner or later they have to build fewer cars. OPEC is the same, plus, unlike Ford and GMC, they don't live here, and they don't care whether we like them or not. If demand falls a certain amount, they'll cut back production to keep the price up. It's pretty basic economics.

 

They did this just after the experts said it would not happen. with that in mind, we need the experts to say 'there is no ways opec will triple production and decide to sell for $5 a bbl' and lets see what happens!

 

The way to give OPEC the final kick in the nuts is to greatly reduce our dependence on oil with new technology. Not only could we then be our own bosses again, but if we really want to neuter OPEC we commit to selling our energy/technology cheaper than oil. i.e. we can then play the supply/demand game ourselves, from a more powerful position...

 

f-em.......the big 2 isnt going to bail us out either, with weaning off of oil. not one car company will steer clear of it until MAN decides to stop driving combustable engines. oil makes economys thrive,and oil can bring an economy to its knees. if were going to tap oil until the end, that natural commodity should be produced by every nation and deliverd world wide with equal value. wtf is the diference if were going to tap all of it anyways? at least not create wars and cripple economys over it. no man should claim stake to anything that has to deal with a natural commodity

 

I don't think you're not going to get much support for that line of reasoning around these parts. A logical (albeit extreme) extension of that would be that physical territory is also a "natural commodity", therefore no one nation would be able to lay exclusive claim to the land within their borders. *That* would lead to conclusions such as non-citizens have every bit as right to physically inhabit the US as citizens, and... well, lets just say you don't want to go there around here without first stocking up on rations and ammunition and putting your family in the witness protection program....