OPEC deceasing supply

[Avatar4321]

Saudi slashes oil output, says market oversupplied - Yahoo! News

Looks like oil prices are going to go up alot tomorrow.

 

[007]

I guess that big collapse that we've been warned about that's coming is going to come a lot sooner than we expected.

The world ain't seen SHIT until they see this country erupt in anarchy.

Better arm yourself.

 

[ogibillm]

the article would seem to contradict your title

"The market is overbalanced ... Our production in February was 9.125 million barrels per day (bpd), in March it was 8.292 million bpd. In April we don't know yet, probably a little higher than March. The reason I gave you these numbers is to show you that the market is oversupplied," Naimi told reporters.

i also like this part

"These statements underscore the breadth of the security premium currently in (oil) prices. Overall supplies are sufficient," said John Kilduff of energy hedge fund Again Capital. "As we've seen in the past, however, a well-supplied market is not always a barrier to very high prices."

 

[Avatar4321]

Decreases in supply will increase the price. It's just the nature of economics.

 

[waltky]

Gas $1.20/gal. cheaper in Mexico...

Americans Driving to Mexico to Buy Gas Should Wake Up U.S. Politicians
Sun Apr 17,`11 | With the price of oil soaring to more than $100 a barrel, many Americans are making a shocking decision on how to fill up their vehicles. Americans who live near Mexico are sometimes driving across the border for gas where prices are on average $1.20 per gallon cheaper. There are conservative and liberal solutions to our dangerous dependence on foreign oil.

The constant fighting in the Middle East points out that the price of oil will always fluctuate. The civil war in Libya is only the most recent conflict in the war-torn region. Simple logic states that in a free market economy, the price of oil would stabilize in America if domestic drilling were increased. However, the Obama administration has consistently curtailed oil production in America.

The BP oil spill in the Gulf of Mexico provided the administration with the perfect excuse to curtail domestic oil drilling. While the media showed photos and videos of oil-laden fish and pelicans, gas prices began their ascent to current levels. An increase in production would also spur economic growth by providing Americans with more jobs. And with a drop in energy prices, Americans would increase spending.

For Americans who are opposed to increasing oil production, there is also a more environmentally friendly solution to rising fuel prices. In 2009, the Obama administration enacted legislation that gave certain new home buyers up to $8,000 in federal tax credits. Although there were abuses, tax breaks are always an incentive for American consumers to develop new purchasing habits.

Congress should consider passing legislation that would give consumers tax credits for purchasing hybrid or electric vehicles. If Americans are punished with exorbitant taxes for purchasing dangerous products such as tobacco, then they should be rewarded for making wise purchases. Automotive companies should also receive incentives for producing more fuel efficient vehicles. This would decrease demand for oil and gas prices would fall. Regardless of ideology, solutions are available for rising gas prices.

Source

 

[editec]

Nothing Obama is doing or not doing is causing this latest run-ip in prices, folks.

The market has a mind of its own.

 

[zzzz]

The current run up of prices is not the result of supply pressures but speculator pressure. I do not see any major movement because of this production correction. Some of the current increase in prices is the result of the refiners going to a summer blend, a blend that requires different additives to keep the fuel from evaporating in the hotter weather. We deal with that every year at this time.

Now if a major supply disruption occurs that is a different story altogether. This is just a minor correction. I paid $2.85 back in February, now $3.85 just 2 months and a $1 increase. That equates for me to a $10-15 increase in my gas budget per week.

 

[editec]

Yeah...the current run up prices is directly costing me about $1200 a year or so more for heating oil and gasoline and gas for cooking.

And the additionall costs we're all paying come at us in rising prices for pretty much everything else we buy, too.

The effect of such quick price increases in energy happens fast and when it does?

The economy starts to go down, again.

Let's hope this latest speculators' inflation won't last