Oil Price thread

Seriously, if this is the type of immediate result we can expect from global warming, where's the down side? Cheaper gas, warmer weather... hell, it's actually not too bad to be living in the North-East US right about now. Ask again in a year, and I bet it'll suck again... but right now, it's kinda nice.

[Haanu]

"The fall led oil group Opec to say it might act if prices continue dropping."

Well god forbid that they can't buy a few more palaces.

[bruce]

Originally Posted by Haanu

"The fall led oil group Opec to say it might act if prices continue dropping."

Well god forbid that they can't buy a few more palaces.

I agree, OPEC is terrible. I also think it will be hilarious what occurs in the middle east when they run out of oil, and have nothing left for their economy. I hope they invest well.

[R33]

Originally Posted by bruce

I agree, OPEC is terrible. I also think it will be hilarious what occurs in the middle east when they run out of oil, and have nothing left for their economy. I hope they invest well.

Is it any wonder that normal people think greens are a bunch of whinging communists?

Oh no someone made a profit - quick get the banners out

Down with OPEC Rah Rah Rah \/

Many countries of middle east is already investing heavily in other areas - tourism being one of them. These guys are not stupid so I guess you'll have to stick to re runs of 'Citizen Smith' to get your jollies.

[bruce]

Opec are a cartel. Hardly bastions of free market ideals are they?

Anyway, doesn't look as though the price drop lasted too long.

Oil prices rose to some $56 a barrel, after seeing their sharpest drop in two years a day earlier.

http://news.bbc.co.uk/1/hi/business/6233589.stm

[R33]

Originally Posted by bruce

Opec are a cartel. Hardly bastions of free market ideals are they?

Anyway, doesn't look as though the price drop lasted too long.

http://news.bbc.co.uk/1/hi/business/6233589.stm

Yes they are a cartel - they have been for years. So what exactly is your beef?

We do business to keep our economies rolling from which they used to build palaces. Now they build hotels, island paradises and conference centers etc. Surely you aren't advocating we tell them how to spend their oil dollars?

[bruce]

Originally Posted by R33

Yes they are a cartel - they have been for years. So what exactly is your beef?

We do business to keep our economies rolling from which they used to build palaces. Now they build hotels, island paradises and conference centers etc. Surely you aren't advocating we tell them how to spend their oil dollars?

They can spend their money how they wish. What I have a beef with is forming cartels that harm free trade. True free enterprise has no cartels or monopolies; show me one and I'll show you a government behind it; Western farming is one of many examples. If any business or occupation, global or otherwise, is open to entry world wide (i.e. there are no government laws or regulations which protect it) all attempts to cartelise or monopolise will fail. Somebody will always jump ship or some upstart will undercut the incumbents to ribbons. Market share is not the issue which defines a cartel or a monopoly; the point is can they gouge their customers without government support and the answer is invariably no.

[R33]

Originally Posted by bruce

They can spend their money how they wish. What I have a beef with is forming cartels that harm free trade. True free enterprise has no cartels or monopolies; show me one and I'll show you a government behind it; Western farming is one of many examples. If any business or occupation, global or otherwise, is open to entry world wide (i.e. there are no government laws or regulations which protect it) all attempts to cartelise or monopolise will fail. Somebody will always jump ship or some upstart will undercut the incumbents to ribbons. Market share is not the issue which defines a cartel or a monopoly; the point is can they gouge their customers without government support and the answer is invariably no.

First of all cartels (or a version of price fixing) are a reality of the capitalist system - we deal with it, whether it be printer ink cartridges or mobile phones.
The oil industry is a different issue. The first job of any nations gov is to preserve the well being of its citizens. Central to that tenet is guaranteeing that nations energy supply. Set against that you have a countries right to maximise its wealth through export revenue. I would argue that the issue of oil supply is too important to leave to chance. This means that whatever deal sweatners, kickbacks etc that Gov's pay to guarantee supply is fine by me. When the stakes are so high on both sides then a degree of price stability becomes the desirable to both sides. I see no evidence of OPEC gouging its customers, I'm quite happy to pay the 27 or so pence a litre petrol costs. Its the 300% tax that sticks in my craw.

[david16]

Oil prices recovered slightly on Tuesday to reach above $55, after hitting 18-month lows.

US light crude oil settled at $55.64, having shed $2.21 to $53.88 in New York while London's Brent crude lost as much as $1.96 but settled at $55.18.

http://news.bbc.co.uk/1/hi/business/6244587.stm

[hoon]

Originally Posted by david16

Oil prices recovered slightly on Tuesday to reach above $55, after hitting 18-month lows.

US light crude oil settled at $55.64, having shed $2.21 to $53.88 in New York while London's Brent crude lost as much as $1.96 but settled at $55.18.

http://news.bbc.co.uk/1/hi/business/6244587.stm

Good. Cheap oil won't make us look for alternatives.