Originally posted by bodrul
reply to post by TheOracle
This is also bad news for the oil producing Arabs
think about it, oil price sucks ,
like putting more gold on the market, less there is the better the value.
That's not quite right, the Arabs as far as I know only sell crude oil. The industrialized nations buy the crude, then choose not to refine it to
artificially drive up the price because there is demand for an artificially scarce resource. I can't say how much a barrel of crude is worth right
now, but those Arab states know how much refined oil is going for, and will adjust their prices accordingly.
It used to be conspiracy theory, but now it's right out there in the news. One guy who sells oil said that the price of oil was dropping too much,
so he was going to produce less refined oil to drive the price back up. I think that should be illegal, but maybe that's just me.