OPEC Dissolved

[IXI CHEWIE IXI]

http://blogs.moneycentral.msn.com/topstocks/archive/2008/09/11/the-death-of-opec.aspx

so whats gunna happen with prices?

[boykosaurus]

I really need to buy a bike.

[Adeniz19]

gas is at 3.70 a gallon still and they want to drive the prices back up again? X-)

fuck opec

[IXI CHEWIE IXI]

dude you know how bad it would be if saudi arabia just stopped pumping oil?

[ambulance]

now if we could only stop the speculation :\

[saysmydoctor]

Oh fuck.

[IXI CHEWIE IXI]

now if we could only stop the speculation :\
what do you think will happen to the gas prices

[ambulance]

http://online.wsj.com/article/SB122100706431117489.html?mod=today s_us_money_and_investing

What do you mean? I think they would go down. That's the obvious result.

[saysmydoctor]

Of Saudi Arabia pulling out? Wrong.

[ambulance]

Of Saudi Arabia pulling out? Wrong.

No not of Saudia Arabia pulling out. Passing a bill to curve speculation.

[open mind]

crazy....i'm no economic expert and i lack comprehensive knowledge on opec, but my gut tells me that this will be bad for prices because saudi arabia was our big ally in opec so now the members that are left are much more likely to tell the u.s. to straight up suck it.

[GiggsOho]

Doesn't help that Chavez threw the U.S. ambassador out of Venezuela and called his back and said "we'll be back when there is a new government." More reason to vote Obama in.

[TK]

So, supposedly, gas is suppose to jump 1.61 tomorrow in Tulsa. My mom called me and told me, and I didn't believe her, so I drove up to Walmart. The gas station clerk was a friend of my mom, and showed me and her a letter from Walmart including information about Hurricane Ike and OPEC

[asmolitor]

dude you know how bad it would be if saudi arabia just stopped pumping oil?
crazy....i'm no economic expert and i lack comprehensive knowledge on opec, but my gut tells me that this will be bad for prices because saudi arabia was our big ally in opec so now the members that are left are much more likely to tell the u.s. to straight up suck it.
Oh fuck.

ummm....

Saudi Arabia walked out on OPEC yesterday, saying it would not honor the cartel's production cut. It was tired of rants from Hugo Chavez of Venezuela and the well-dressed oil minister from Iran.


As the world's largest crude exporter, the kingdom in the desert took its ball and went home.


As the Saudis left the building, the message was shockingly clear. “Saudi Arabia will meet the market’s demand,” a senior OPEC delegate told the New York Times (http://www.nytimes.com/2008/09/11/business/worldbusiness/11oil.html?_r=2&adxnnl=1&oref=slogin&ref=business&adxnnlx=1221131040-KOS/e6DE0gSZ3H0lkcDcLw&oref=slogin). “We will see what the market requires and we will not leave a customer without oil."

that actually sounds pretty good to me. of course, if saudi arabia decides to produce as much oil as possible, we're trading lowered prices for an exacerbated future problem in terms of supply.

i mean, the markets usually see these things coming, so to speak. if oil's down to $100 a barrel, i see no reason oil won't return to $70 given the pressure on speculators and OPEC's possible irrelevance. of course, that sort of entails a need for alternative energies a little sooner than expected - since well, once americans see under $3 a gallon at the pump, shit's over. the article also said brazil found another huge oil deposit.

oh, and ike won't do a damn thing. the jump in prices - the "$1.61" that everyone's currently shitting themselves over, is mostly contained to cities along the gulf region in anticipation of delays in supplies coming directly from texas. however, oil's kind of one of those things that involves a globalized market. and if ike were to somehow rupture the flow of oil supply... well, don't you think saudi arabia would jump at the chance to fill in, given that they don't have to cater to OPEC's production quotas/limits?

EDIT: and another thing, has no one considered the jump of gas prices in gulf states to be directly influenced by people filling up their tanks in order to get the fuck out? i mean, there's probably a pretty causal relationship there. you know, that whole increased demand thing.

[ambulance]

ummm....


that actually sounds pretty good to me. of course, if saudi arabia decides to produce as much oil as possible, we're trading lowered prices for an exacerbated future problem in terms of supply.

i mean, the markets usually see these things coming, so to speak. if oil's down to $100 a barrel, i see no reason oil won't return to $70 given the pressure on speculators and OPEC's possible irrelevance. of course, that sort of entails a need for alternative energies a little sooner than expected - since well, once americans see under $3 a gallon at the pump, shit's over. the article also said brazil found another huge oil deposit.

oh, and ike won't do a damn thing. the jump in prices - the "$1.61" that everyone's currently shitting themselves over, is mostly contained to cities along the gulf region in anticipation of delays in supplies coming directly from texas. however, oil's kind of one of those things that involves a globalized market. and if ike were to somehow rupture the flow of oil supply... well, don't you think saudi arabia would jump at the chance to fill in, given that they don't have to cater to OPEC's production quotas/limits?

EDIT: and another thing, has no one considered the jump of gas prices in gulf states to be directly influenced by people filling up their tanks in order to get the fuck out? i mean, there's probably a pretty causal relationship there. you know, that whole increased demand thing.

Maybe Saudi Arabia is smarter than we think lol
Lower prices so we don't want to become energy independent from their most profitable commodity haha

[saysmydoctor]

Still, Saudi Arabia really grabbed its balls.

[open mind]

ummm....


that actually sounds pretty good to me. of course, if saudi arabia decides to produce as much oil as possible, we're trading lowered prices for an exacerbated future problem in terms of supply.

i mean, the markets usually see these things coming, so to speak. if oil's down to $100 a barrel, i see no reason oil won't return to $70 given the pressure on speculators and OPEC's possible irrelevance. of course, that sort of entails a need for alternative energies a little sooner than expected - since well, once americans see under $3 a gallon at the pump, shit's over. the article also said brazil found another huge oil deposit.

oh, and ike won't do a damn thing. the jump in prices - the "$1.61" that everyone's currently shitting themselves over, is mostly contained to cities along the gulf region in anticipation of delays in supplies coming directly from texas. however, oil's kind of one of those things that involves a globalized market. and if ike were to somehow rupture the flow of oil supply... well, don't you think saudi arabia would jump at the chance to fill in, given that they don't have to cater to OPEC's production quotas/limits?

EDIT: and another thing, has no one considered the jump of gas prices in gulf states to be directly influenced by people filling up their tanks in order to get the fuck out? i mean, there's probably a pretty causal relationship there. you know, that whole increased demand thing.

like i said i'm no expert but if the saudi's are the only ones willing to keep up with demand at a potential loss in profit i can see other countries in opec lowering production even more just to re-inflate them....so i'm not sure if this move will do much good in either short or long term.

[open mind]

Maybe Saudi Arabia is smarter than we think lol
Lower prices so we don't want to become energy independent from their most profitable commodity haha

the saudi's own a significant chunk of our economy so it makes sense for them to do what they can for it.

[ambulance]

like i said i'm no expert but if the saudi's are the only ones willing to keep up with demand at a potential loss in profit i can see other countries in opec lowering production even more just to re-inflate them....so i'm not sure if this move will do much good in either short or long term.

I'm no expert either so all of my thoughts are just speculation too. but that would be a complete dick move (and not very smart one imo) because that would still make us push for alternative energy, thus becoming less dependent on foreign oil. I don't think OPEC is that stupid. Plus its going to be hard to justify a decrease in OPEC production allowing only Saudia Arabia to meet the worlds production needs. Its a very complicated mess if you think about all the options. OPEC could try decreasing production to pressure Saudia Arabia back into OPEC, but its not like the middle east is the only one producing oil these days. There are lots of scenarios to think about. I'm curious to see how it actually plays out.

[SoggY ThE OnE]

This is crazy!
why do we speculate on oil?
It's so fucking dumb.

[saysmydoctor]

Really dumb question.

[asmolitor]

speculating on oil is an incredible hedge against external business costs.

[open mind]

I'm no expert either so all of my thoughts are just speculation too. but that would be a complete dick move (and not very smart one imo) because that would still make us push for alternative energy, thus becoming less dependent on foreign oil. I don't think OPEC is that stupid. Plus its going to be hard to justify a decrease in OPEC production allowing only Saudia Arabia to meet the worlds production needs. Its a very complicated mess if you think about all the options. OPEC could try decreasing production to pressure Saudia Arabia back into OPEC, but its not like the middle east is the only one producing oil these days. There are lots of scenarios to think about. I'm curious to see how it actually plays out.

it'd definately be a dick move....but that'd probably be kind of the point, it's not like the majority of the countries that are a part of opec are in love with america and it's foreign policy.....the iraqi's included since they have refused deals with the u.s. while signing them with china.

i think we're going to push for alternative energy with or without opec attempting to get even.