The death of OPEC - Top Stocks Blog - MSN Money


Discuss.

 

Very interesting indeed! Can't wait to see what happens now. Guess I need to take back some of the things I've said 'bout them Saudi's in the past, being a veterain of the Gulf War......maybe NOT.

 

thats pretty interesting i think that maybe the fact the Americans want to drill off shore may have them wondering. i wanna see how this turns out

 

man, i think i just sighed with a though of relief. mark, before you b*^& about no caps, i have baby in my hand, and that is more important then finding a shift button.

 

this really is NEWS!! it takes a lot to keep their giant palaces running. do you think they want to lose customers?

 

Lets hope we see a major drops at the pump. Its pretty sad to see that fuel hasn't dropped much here recently but oil is almost under a 100 dollars a barrel, where as when it went up a dollar it would rise at the pump 3 cent.

 

Call me pessimistic by nature, but both our allies and opponents in OPEC have played the same tune for decades. Remember the last oil crisis? Remember America getting serious about becoming energy independent last time?

They only have to keep the prices low enough to make it uneconomical for us to pursue alternative energy or our own oil. When we abandon those efforts, prices can rise again slowly, but not too much, without too much opposition. Those countries don't exactly have a lot of alternatives in terms of exports to keep their revenue up. They would much rather sell 2 million barrels of oil a day at $50 per barrel, than sell 300 barrels a day at $200.

The more our government pursues drilling our own oil, the more they will be inclined to boost production and make the price of oil drop. Just like they did last time.

 

Could someone explain the OPEC deal to me.

 

I read this eariler today. Very interesting.

 

Think, you and bunch of people playing monopoly, the problem is that THEY own all the property, with 10 hotels per property. the only places you can land and not pay for it are, go to jail(new exploration in our country cause you go there and have to sit for three rounds which would be how long it would take to get new rigs drilling), free parking(our oil reserves). If you land on CHANCE you usually get screwed(opec meets and slows production, thus driving prices higher, the whole supply vs demand thing) the only way to win is to not play the game.

OPEC - Wikipedia, the free encyclopedia A little better explanation. notice the chart on the bottom of the WIKI page. The Saudis have the highest production quota of any other country. Today they said they are taking thier toys and playing with others, and basically snubbed the other players in the sandbox.

 

Thanks Brandon

 

awesome!! i hope the price at the pump will benefit from this. i agree totally. they cant eat sand. they have to sell something and oil is all they have. i do think we should still drill as not to ever be in this position again. it has nothing to do with the environment and i think "peak oil" is a governmental/environmental scare tactic and furthermore anyone that believes in anthropologic global warming is a well.... you know....... its all about money and power. there is too much scientific data out there from reputable scientists and universities, NOT THE UNITED NATIONS PANEL ON CLIMATE CHANGE, that DOES NOT support global warming for me to even consider its existence. Whew sorry, i think my blood pressure was starting to rise. anyway the oil gig is about the almighty dollar and blinded ravenous greed, pure and simple economics.

for example, if we all HAD to have an air filter cover from pete (and they are very nice, i have two yellow ones!!) to make our trucks run, and pete decided to raise his price 50%.....but amidst our grumbling, he kept selling them. he may be inclined to raise the prices and test what the market will bear, until he noticed sales going down, should he take it that far. But pete is a nice guy, not a big oil conglomerate that has decided to rape his own people for personal greed. Pete sells a great product at a great price and that will guarantee him business for a long time coming, in my opinion, which that (again, in my opinion) is truly the american way. sorry for the rant, i gotta quit drinking coffee this late!!

 

This is not totally true, however, oil is by far the largest source of their monetary wealth. I am glad they are walking away from OPEC. Competition almost always benefits the consumer.

 

okay, oil, dates and fish......LOL!!

In 2007 oil and petrochemicals accounted for over 80% of the nations total exports so , in my opinion, that is all they have. literally you are correct and i was on a rant; however, if their oil fields were to dry up, the nation would be flat busted rather quickly and have to start selling hand blown glass or something from all of that sand!!

 

You forgot flying carpets.

Like said earlier, we need to competition in order to keep prices from being artificially propped up. Right now, the cartel (I always thought that name was appropriate) can turn the spigot on and off without anyone else being able to compete.

Brandon, love the monopoly analogy - perfect way to describe these guys.