Saudi King: Oil Prices Should Be Much Higher

Saudi King: Oil Prices Should Be Much Higher

www.huffingtonpost.com

CAIRO, Egypt — OPEC ended a hastily convened meeting in Cairo Saturday without announcing new output cuts, despite the steep drop in crude prices and the threat it poses to member governments' national budgets.

The oil producing group's president, Chakib Khelil, said OPEC is concerned about the weakening world economy and its impact on oil prices. The group, however, will likely wait until a meeting in Algeria on Dec. 17 to decide whether to cut additional crude supplies from the market.

Khelil said oil ministers of the Organization of Petroleum Exporting Countries "agreed to take any additional action on 17th of December to balance oil supply and demand and achieve market stability."

His comments came after the group convened what it called a consultative meeting in Cairo to take stock of market situations and to asses whether members were complying with a 1.5 million barrel per day output cut announced Oct. 24 in Vienna, Austria.

Khelil said preliminary market data indicated members were complying with the earlier cuts.

Saudi Arabia's king said in an interview published Saturday in a Kuwaiti newspaper that the price of oil should be $75 a barrel, much higher than it is now, but the conclusion of the Cairo meeting with no announcement on output indicated no measures would likely be taken until OPEC meets again next month.

(visit the link for the full news article)

Lovely.

I am reminded that a right leaning friend of mine asserted that is was our right as Americans to have cheap gasoline. That we were entitled to it.

I told him bullhooey.

Having lived in New England where most of the homes are heated by oil I can say from personal experience that any increase in oil costs can make the difference between being comfortable and freezing... especially if your income is marginal to begin with... a raise in the price of oil can send you off the financial deep end.

At the same time high oil prices encourage people to conserve and the car companies to produce more efficient vehicles...

... so what do ya do?

www.huffingtonpost.com
(visit the link for the full news article)

reply to post by grover


We attempt to conserve and make more efficient cars, OPEC will punish us for such actions. Hence this is happening. A response/ counterresponse.

Would it be inappropriate if I told him to suck on my big fat.... turkey leg? In thanksgiving spirit and all.

reply to post by deltaboy


Exactly, until we reach the point where we are so energy efficient that they won't even be able to sell us their oil as sex lube.

The fact that they constantly cut or increase production to make themselves profits says the whole system is corrupt.
What will they do, when people eventually stop using oil.
How will they get money then?
They have probably already invested in all the other alternative sources of energy.
And will try and control and manipulate that as well.

Originally posted by CaptainCaveMan
The fact that they constantly cut or increase production to make themselves profits says the whole system is corrupt.

I'll play the devil's advocate.... and how is it corrupt? Its capitalism at its most predatory.

Originally posted by grover

Originally posted by CaptainCaveMan
The fact that they constantly cut or increase production to make themselves profits says the whole system is corrupt.

I'll play the devil's advocate.... and how is it corrupt? Its capitalism at its most predatory.

Um...that goes to show you how much you know about Capitalism. To even think that OPEC, an oligopoly, resembles anything to free market capitalism is saying that the federal reserve fixing interest rates in capitalism. They FIX the amount of oil they want to produce in order to raise or lower prices. Markets decide how much should be produced to be most efficient in the free market system.

reply to post by RetinoidReceptor


But if you are a manufacturer after you cover the cost of production you try and set the price as high as you can get away with it then if it doesn't sell you lower the price... but when they raise prices to keep prices high... that is called profiteering.

I am not arguing in favor of the price hike or the king's comments I am just playing devil's advocate and asking how is it corrupt.

Originally posted by grover
reply to post by RetinoidReceptor

 

But if you are a manufacturer after you cover the cost of production you try and set the price as high as you can get away with it then if it doesn't sell you lower the price... but when they raise prices to keep prices high... that is called profiteering.

I am not arguing in favor of the price hike or the king's comments I am just playing devil's advocate and asking how is it corrupt.

Yes it is called profiteering, but it isn't capitalism. This is a reason why socialism doesn't work because people set prices to help their buddies in industry and it creates shortages or surpluses (depending who the government wants to benefit).

OPEC is a cartel, and thankfully they have never really been successful at making significant impacts on the price of oil. But to call them capitalistic is wrong. They are corrupt because they do not try to mimic the market's price as they say, they try to raise it to a price where they can make money and hopefully build 7-star under water hotels.

Like I said though, they are rarely successful. But if the market says oil prices should be 36 dollars, OPEC will cut production to raise prices. Do you see how this isn't Capitalism? They are corrupt, but anyone would be if they were in that position.

Regardless of whether you prescribe to oil being finite or a renewable energy source, the fact remains, thanks in no smart to Sharia Law, these folks will be roaming around the desert 50 years from now lopping each others heads off and fighting tribal wars.

Of course, most of the world will be in the same boat.

As long as needy countries such as Iran are unhappy, the lower the price, the better to bite that one jerk in the a$$ with their economy.

Unfortunately, that also means they'll still be a pain in ours as if it's us and not them doing it.

What goes around comes around. If $75.00 a barrel keeps us on schedule to modernize and get off of foreign oil faster, than all the better for us and NOT them. The gravy train for Opec is coming to an end....hopefully sooner than later. It just sounds too good to be true and typical politcs and lobbying.

Everyone should go listen to Lindsey Williams on Alex Jones' Youtube channel...

Lindsey predicted the oil fall to below 50 dollars a barrel 6 months ago when it was 200 dollars a barrel.

He says it's going to stay this way, because it is the will of the powers that be to now economically crumble the Middle East.

Ok communication problem.
Who is actually disagreeing with me, that the price of oil is manipulated?

now that we have a freedom and oil hating democrat in charge its no wonder that their so low! if other americans cant afford oil for their cars their not working hard enough and in america we dont reward laziness that is not the american way.

Originally posted by Reddupo
Everyone should go listen to Lindsey Williams on Alex Jones' Youtube channel...

Lindsey predicted the oil fall to below 50 dollars a barrel 6 months ago when it was 200 dollars a barrel.

He says it's going to stay this way, because it is the will of the powers that be to now economically crumble the Middle East.

I guess the powers that be are very fickle. I guess they want world growth again because of the low cost of oil? Rather than purge the world into eternal doom and darkness?

The food that we sell to Saudi Arabia should be priced much higher.
The fighter/bombers and military equipment we sell to Saudi Arabia should be priced much higher.
The technical assistance that we provide to Saudi Arabia should be priced much higher.
The fine automobiles that are sold to Saudi Arabia should be priced much higher.
All the foreigners who work for Saudi Arabia and do every single job in the Kingdom so Saudis do not have to lower themselves to do manual labor should be paid much more.

Originally posted by Reddupo
Everyone should go listen to Lindsey Williams on Alex Jones' Youtube channel...

Lindsey predicted the oil fall to below 50 dollars a barrel 6 months ago when it was 200 dollars a barrel.

He says it's going to stay this way, because it is the will of the powers that be to now economically crumble the Middle East.

It seems to me that this would only fulfill some biblical prophecy and to instigate revenge against none other than Israel such as was claimed in WW2 by the Nazis.

Several OPEC countries are nearing their break even point for costs to produce each barrel. When they reach that point they will just shut down their oilfields, but of course the "free market" proponents will be outraged and blame any oil shortage on them as usual. Oil is a resource that BELONGS to the people of these countries we buy it from. We either pay the price they ask or don't buy it from them. We don't have any special right to their oil.

And you should know that when oil was $147 a barrel, it was mainly because the $US was at an all time low and the OPEC countries were getting screwed by the currency drop. As an example, oil priced in Euros cost E60 a barrel in 2000 and E80 a barrel in 2008 vs. $60 in 2000 and $147 in 2008. A 30% increase vs. 150% because of the exchange rates.

No surpise he would say that. He has many more gold palaces and SOLAR cities he needs to build. Hard to do when he isn't making his grotesque mark-ups. lol

The entire oil industry makes me sick, as well as the all the folks oppressing / suppressing better technology / fuel sources, because they haven't figured out a way to continue raping the masses by controlling those sources yet.

Greed rules this earth.