Has OPEC Lost Control?
OPEC wants to prop up the dive-bombing price of oil, to keep their bank accounts flush with fresh cash. Russia is also feeling the pinch, as the rest of the world decides it _can_ live on less oil than previously consumed. OPEC would like Russia to join them in cutting output, in an effort to bring prices up.
Opec has been eagerly trying to recruit Russia to join its efforts and analysts say together the two could announce a further reduction of as much as 3m barrels a day of oil production within the next week.
Chakib Khelil, Algeria’s oil minister and Opec’s president, told state radio on Thursday there was a consensus among Opec members to reduce production when they met in the Algerian seaside town of Oran on December 17. He said: “The Oran meeting will decide a severe production cut to stabilise the oil market.â€Â
Time will tell if they can woo the worlds consumers back to heavy consumption at the same time they bring prices back to “normal” profitability. If they are successful at turning this train around, then it’s likely the run-up and recovery of recent history were always under OPEC control – then what does it say about their intentions, as America teetered on the brink of the housing investment crisis in an election year…
What do you think?
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This past year the high cost of fuel bankrupted us as a nation at large. Yet, not enough attention or credit has been given to this one single factor in our economy. Large portions of every budget was thrown away on fuel from the schools keeping their school busses on the road to police and fire departments. It was not planned nor expected but happen just the same. The trickle down/ripple effect is never ending.The cost of every other consumer product that budgets must cover were further sucked away from increased prices on consumer goods that have risen do to the higher production and shipping costs. WE need to invest some of these billions in stimulus pkgs (that did nothing for our economy) and bail out funds to initiate alternative energy projects. Create millions of badly needed now green collar jobs, create clean cheap energy, and get out from under our dependence on foreign oil. OPEC is planning to cut production to raise prices again. We can’t take another year like the last. Jeff Wilson has a wonderful new book out called The Manhattan Project of 2009 Energy Independence Now. This book is so profound it needs to be a required read of every government official. We have to look at our problems in the long term. Tunnel vision and short term memory loss has contributed to our economy’s downfall.
It’s funny how fuel has come down but the other consumer products that went up have not come down at all. Just shows you how greedy this world has become.