Is this guy mentally challenged? Demand is lower BECAUSE PRICES ARE SO FREAKIN' HIGH!!! And now he wants to !raise! them! Un-flippin'-believable.

Please read the rest of the article in which the reason for a cut is made quite clear :

Algeria joins Iran and Venezuela in calling for a cut in output ahead of the second quarter when demand for heating fuel was expected to drop owing to warmer temperatures in energy-hungry Europe and the United States.

All three are traditional hawks in OPEC, frequently favouring output cuts to support oil prices, which are trading at record highs above 100 dollars per barrel.

So this is a cut to prop up prices to where they know the US government and others would like it to be; why else would the US national security people wish to invade Iraq and destroy oil production capacity all around the world? Can you think of many better ways to create a global demand for US dollars?

Please stop holding OPEC countries responsible for these high oil prices as if they have the power to raise prices in a world where countries are destroyed for far lesser crimes!

Stellar

I believe that the U.S. is happy with any price as long as oil is traded in U.S. currency. That way other nations will always need the U.S. dollar. I think OPEC has finally caught on to the truth. It really doesn't matter what the price is to a certain extent. People want and need oil. Would you stop driving your car if gas was $4 a gallon, $5 a gallon? What's your limit of pain?

OPEC is testing the waters to see if they can find out.

Originally posted by chromatico
No! It doesn't anywhere in that quote that the cut was made because America wanted it! Where are you getting this stuff from?

That i didn't say and if you want to know what i said i suggest you actually read the entire article, and my post, a few times more. If you don't understand how the petrodollar economy works or why the US could or would conceivably attack other nations to ensure high oil prices you can ask more specific questions or just do your own research.

Stellar

Maybe the problem is that the US$ is next to worthless and in real terms $US100 a barrel oil is a firesale price for them?

Something doesn't add here, we know that in the last 8 years our gas, economy the relationships and hold on the US by foreign nations specially now the Arabs is getting stronger and less restricted, all in the last 8 years.

We see no regard for the American people that are stuck with this mess in oil, high cost of living and inflation, I am sorry but call me anything you want but this is no right, it doen't look right, smell right and feels right.

Yesterday the Arabs said that they can not save the Citigroup even with all the billions that they have pumped already and that more will be needed.

Is our nation begging for this people's money at the expenses of the American people? so the banking system be saved?

Keeping production so prices stay high.

It sounds like Arab money is been change to keep the economy afloat while we the citizens are squeeze out of our pay checks, but they are getting their money back with the oil prices staying high.

Originally posted by dbates
I believe that the U.S. is happy with any price as long as oil is traded in U.S. currency.

Clearly they are not happy with *any" price as the price keeps rising as the US economy tanks... Will you acknowledge that US foreign policy decisions seems to result in oil production restrictions and supply fears?

That way other nations will always need the U.S. dollar. I think OPEC has finally caught on to the truth.

When last do you think OPEC had direct control over the pricing of Oil or for that matter had the strength to risk economic sanctions or invasions to act against US pricing regimes?

It really doesn't matter what the price is to a certain extent. People want and need oil. Would you stop driving your car if gas was $4 a gallon, $5 a gallon? What's your limit of pain?

Americans are paying too much but still much less than people in most other developing/developed countries and this can largely be explained by the absence of the US governments investment in public transportation. To create the notion that foreign interventions are required to secure in the US oil needs all manner of schemes are devised to create artificial shortages, fears about such or at the very least extreme wastage to get rid of as much supply as possible

OPEC is testing the waters to see if they can find out.

OPEC is for the most part doing what it's told and since they risk their very necks by oversupplying the world market they are doing their best to avoid such by just supply in demand and allowing the US national security state and it's oil allies to create the climate of fear that encourages speculation against the measured supply.

There is NO scarcity of oil in the ground or production capacity but it is in only a few states interests to attempt flooding the market and risking the blowback.

Stellar

[edit on 5-3-2008 by StellarX]

Originally posted by mythatsabigprobe
Maybe the problem is that the US$ is next to worthless and in real terms $US100 a barrel oil is a firesale price for them?

That is a pretty astute observation in terms of the general knowledge here and in my estimation per barrel prices can rise to about $220 to get to the same comparative impact of the 1970's oil shocks. I am glad that someone understands just how fast the dollar has declined in the last few decades!

Stellar

Originally posted by marg6043
Something doesn't add here, we know that in the last 8 years our gas, economy the relationships and hold on the US by foreign nations specially now the Arabs is getting stronger and less restricted, all in the last 8 years.

The Arabs are terribly small bit players in this crisis that could be crushed without much ado if they did not have the support of the nations that are in my estimation holding the whip in world affairs.

We see no regard for the American people that are stuck with this mess in oil, high cost of living and inflation, I am sorry but call me anything you want but this is no right, it doen't look right, smell right and feels right.

The USA was , and in many ways still is, a third world nation half a century before the word was coined and despite two centuries of struggle it will go that way again if the citizens of the US continue to allow themselves to be manipulated. It's not that i live in much of a democracy but at least if things go down the drain in this part of the world there are PLENTY of reasonable , to say nothing of accurate, excuses. The same can not be said for the hard working ( longest hours in the industrialized world) educated Americans who are failing to prevent their so called leaders from stealing the freedoms they gained over such a long span of time.

Yesterday the Arabs said that they can not save the Citigroup even with all the billions that they have pumped already and that more will be needed.

There is no way in which such small economies could possibly save citigroup to start with and ( only central banks can create capital that fast) even thought the Saudi's regime will do what it can it wont come close to covering the cost of financing US consumer spending or preventing a recession.

Is our nation begging for this people's money at the expenses of the American people? so the banking system be saved?

It's not begging for 'money' ( that the fed can print or create from thin air all on it's own) but trying to create the illusion that other countries are still willing to invest their hard earned ( or in the Saudi case not so hard earned) money to prop of the failing USD.

Keeping production so prices stay high.

If they allow more oil on the market oil prices may quickly fall to twenty or thirty dollars again and at that point it will just require more investment to prop of the illusion of health...

It sounds like Arab money is been change to keep the economy afloat while we the citizens are squeeze out of our pay checks
but they are getting their money back with the oil prices staying high.

Well the Arabs got their money from US tax payers to start with and all that is happening now is that they are lending it back at a fair profit to themselves. The US tax payer's money is obviously being used to finance these loans in the short term while the long term picture darkens...

Hope that helps.

Stellar

Originally posted by StellarX
OPEC is for the most part doing what it's told

Honestly? Do you really belive that they are controlled to the point that they can't even set their own prices? That would be scary. Obviously the U.S. has quite a bit of say-so in the matter. I mean the price of oil is still tied to the dollar. We'll just have to wait and see how long this holds out if the value of the dollar keep slipping against the Euro.

So $120 oil by year end? More? When does the prices switch to the Euro for trading? I guess that depends on who really controls OPEC. Or will the U.S. just invade the next country that attempts to switch to another currency for selling?

Originally posted by StellarX
There is NO scarcity of oil in the ground or production capacity

Now this is where you and I differ. I'll save this for another discussion but I don't want to let you slide too easy.

Originally posted by dbates
Honestly? Do you really belive that they are controlled to the point that they can't even set their own prices?

Well it's not like i believe them but that's what even they are claiming... Sure they can decide to simply produce more oil and thus destroy the price regime but how is that in their interest when it's widely understood in the markets that there are in fact no short term shortages?

That would be scary. Obviously the U.S. has quite a bit of say-so in the matter. I mean the price of oil is still tied to the dollar. We'll just have to wait and see how long this holds out if the value of the dollar keep slipping against the Euro.

Or the US has very little say so in the matter and others ( such as Russia) are just beniffting more so. Remember that while the high oil prices might aid the US economy in general that's just good old fashioned clean profit for the Kremlin treasury... One may very well argue that what is keeping the one super power afloat is strengthening the other no end!

So $120 oil by year end?

I really have no idea and all i can say is that the two most heavily armed countries in the world would both be happy with that price range.

More? When does the prices switch to the Euro for trading? I guess that depends on who really controls OPEC.

The oil price will not decline simply because it's being traded in Euro's as whatever oil is still traded in dollars will just have to make up for the 'lost' Euro trade revenue. As the dollar weakens and losses ground ine Nymex and LPE trading something they will have to do that or another means will have to be found to create a demand for all the dollars the fed will have to keep feeding into the economy.

Or will the U.S. just invade the next country that attempts to switch to another currency for selling?

Well they may wish to but if they try another ground invasion that will be the last one this decade and probably well into the next. Since the US can probably destroy sufficient oil infrastructure by air bombardment or political manipulation i do believe there is more to the Iraq invasion than simply restricting the flow of oil.

Originally posted by StellarX
Now this is where you and I differ. I'll save this for another discussion but I don't want to let you slide too easy.

Since neither of us have changed our minds there does not seem to be any way around this.

Stellar