Higher Gas prices on the way?

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CountryBoy

CountryBoy

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CountryBoy said:
I didn't know where exactly to put this so I also put it in nnuut's "Oil Slick Stuff" thread.

Oil markets should brace for a surprise decision on output cuts when OPEC meets Dec. 17, the cartel's president said Saturday, suggesting that reductions could be deeper than expected.

http://hosted.ap.org/dynamic/stories/A/AF_ALGERIA_OPEC?SITE=TXWIC&SECTION=HOME&TEMPLATE=DEFAULT

Just something else to think about. :(

It loks like it'll be announced Dec 17.

CB
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No way the production cuts will stick!
 
I heard a news article about OPEC production. OPEC has to hire monitors in some countries because some countries agree to cut production but do not. The monitors are hired to count tanker going in and out of oil ports.

Some of the countries are so extended that they could not afford to lower production too much, especially at these low prices.
 
ATCJeff said:
CB that comment was not directed at you. It was just a general statement. I apologize if I offend you.

Jeff
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I guess I should've had my first cup of joe before I responded, then it wouldn't have hit me that way. Thanks Jeff, I shouldn't have been so thin skinned. :laugh:

Rus
 
You know, I've been hearing talk about this for several weeks now. I believe for a large part, it is simply talk, with the hopes of a 'scare' in the market that will drive prices up. (Remember back in the summer? Just the thought of a hurricance or a political disturbance in the middle east would send oil prices soaring!)

I read somewhere a few days ago, that some of the Middle Eastern countries were enjoying the high oil prices of the summer, that their budgets had been planned on $90/bbl oil, and that now the reduced oil prices was causing them major economic difficulties! (Welcome to the rest of the world!)

Anyhow, the way I figure it, if they are already hurting from a loss of income - NO way can they afford to sell less oil and get a lower price also. And with the economies of the world such as they are, if they cause prices to go up, demand will fall again, so it is a 'catch 22' situation.

Long story short, I think they are simply trying to scare the market into a price increase.

*just my humble opinion*
 
Last time gas prices went up, the dollar was dropping like a rock. The Middle Eastern countries watched their dollar holdings lose value as fast as oil prices rose, and also watched commodity (especially food) prices rise to the roof. They know now to beware what they wish for, rising gas prices based on a falling currency did NOT help them at all. It actually made things worse. Some of the Middle eastern countries need very badly to sell oil and are not going to cut production due to the losses they ironically took when oil prices skyrocketed.

There is a point where selling is not worth the price of production, but until oil prices get there I don't think a production cut is in the cards.
 
Oil will be $200 a barrell by December 2009. Lindsey Williams has been spot on with oil price predictions for the past 2 years.

February 2008 Williams predicts $150 a barrel for the Summer of 2008. The good stuff is at the 8 minute + mark. Williams had predicted a year earlier (2007) that oil was going to $100 a barrel by 2008, which it did.

http://www.youtube.com/watch?v=iqLdCJzeMjQ

July 2008 Williams predicts $50 a barrel by Christmas 2008. It hit the $50 mark this month.

http://www.youtube.com/watch?v=Dqbx7CVWReU

Jason
 
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