OPEC wants oil to reach $70 a barrel

Discussion in 'Energy' started by Gunny, Apr 26, 2009.

  1. Gunny
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    Gunny Gold Member

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    Screw OPEC.
     
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  2. Valerie
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    Valerie Gold Member

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    Isn't it crazy? Now they say the market will be happy with oil at $70-100 per barrel.

    Some are saying oil is the new gold standard, but much less stable!



    Venezuelan President Hugo Chavez courts Arab support for oil-backed currency proposal
     
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  3. Toro
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    Toro Diamond Member

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    Of course, OPEC is being self-serving. But it is unsure how much influence these guys have over the price of oil now anyways.

    Its also true that that the marginal cost of production of new fields is about $60-$70, maybe a little lower. That's what it roughly costs to lift oil out of the tar sands in Canada and ensure an adequate return on capital. So oil is likely to fluctuate between $40 and $80 over the foreseeable future, with the trend moving up over time.

    BTW, Chavez has little influence over OPEC. He's been starving the Venezuelan oil company PdVSA maintenance capital. Plus, he's driven out foreign companies with technical expertise to refine the heavy crude in which Venezuela is awash. Because of this, oil production in Venezueal has fallen. So don't take what he says too seriously.
     
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    Last edited: Apr 26, 2009
  4. RodISHI
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    RodISHI Gold Member

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    From an article on April 20, 2009
     
  5. Valerie
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    Valerie Gold Member

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    Looks like Chavez is just posturing and isn't taken very seriously by many.


    I do think it's headed to $80 though.


     
  6. Annie
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    Annie Diamond Member

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    They've been trying since fall to get the price up, no luck, demand is down.
     
  7. Valerie
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    Valerie Gold Member

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    Yes, demand is currently down and some are trying to manipulate further by saying all the measures to decrease volatility are causing such a decrease in revenue thus causing them to not want to invest in more drilling productions. :doubt:

    http://www.bloomberg.com/apps/news?pid=20601087&sid=ax.WSljkhssw&refer=home

    Ask yourself percent of WHAT and compared to WHAT?
     
    Last edited: Apr 26, 2009

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