Price of Oil - Comments from OPEC

[Sterling]

So we all are frustrated by the Oil market and some of us have been saying the prices are artificially inflated and it should be a bubble ready to pop. From everything I read, this is not a supply and demand issue, it's hype from a bunch of investors yelling $125 a barrel (same one's that said "It could even hit $75" a year ago) with no real substance. Consumers are also to blame when we perpetuate the hype and start talking about how it could hit X per gallon by the summer. Hey, if you're joe investor and you hear that, sounds like a good time to buy, right? Perception becomes reality and it's self fulfilling. I believe/hope that the short term artificial bump we've hit may drive lower long term prices. It costs about $9 a gallon to get it and stocks are as good as they were when we were paying $1.50 a gal.

I was glad to see (and very surprised) that OPEC seems to be supporting some of this thinking. They noted an optimal price should of $85 - 90 and remember, they are the ones making the most money on it.

I can't wait until my boat is fueled by seawater.

Here's a quote and a link:

Khelil said crude stocks were well within their five-year average and the 13-nation group was not inclined to either boost or reduce its current output of about 32 million barrels a day. OPEC satisfies roughly 40 percent of the world’s demand for crude.

OPEC said it “highlighted the economic slowdown in the U.S., which, together with the deepening credit crisis in financial markets, is increasing the downside risks for world economic growth and consequently demand for crude oil.”

“Crude oil prices are being strongly influenced by the weakness in the U.S. dollar, rising inflation and significant flow of funds into the commodities market,” it said.

Oil shot up a dramatic 19 percent last month as the falling dollar prompted speculators and other investors to shift cash to crude and other commodities as a hedge. Among other reasons for the spike: tensions in the oil-rich Middle East and Turkey’s incursion into northern Iraq.

Key cartel members said this week that prices in the $85 to $90 per barrel range would be optimal."

They also blame the current US administration which is a big surprise given the perceived support they've given oil.

Here's the link. http://www.msnbc.msn.com/id/23480167/
I'm guessing we'll see a 20% drop in crude over the next week.

[Capt. Jon Tennant]

Here's a quote and a link:


They also blame the current US administration which is a big surprise given the perceived support they've given oil.

Here's the link. http://www.msnbc.msn.com/id/23480167/
I'm guessing we'll see a 20% drop in crude over the next week.

there not the only ones who think this piss poor administration is a large part of the problem. why wouldn't oil prices go up the value of oil has not dropped.. the dollar on the other hand is another story. I favor neither republicans or democrats, but I can recognize that we now have a stupid jackass that has done his best to run America into the ground.

[anthony]

Couple of things. Although I am no longer a big Bush fan I don't think we can place the cost of oil and energy solely around this administration's neck as there are a number of economic factors that play a part including the mortgage crisis and a different world economy that is driving even grains and oilseeds through the roof.

I would guess OPEC figures the $80-90 a barrell price is about what we will tolerate without really making finding alternative energy solutions the number one priority.

[cheeks]

I'm guessing we'll see a 20% drop in crude over the next week.

FYI the april NYMEX contract closed at a record high today at $107.90

[Sterling]

Yeah, go figure. I can't figure it out. Good thing I'm not a commodities trader.

[Glenn W]

Couple of things. Although I am no longer a big Bush fan I don't think we can place the cost of oil and energy solely around this administration's neck as there are a number of economic factors that play a part including the mortgage crisis and a different world economy that is driving even grains and oilseeds through the roof.
I would guess OPEC figures the $80-90 a barrell price is about what we will tolerate without really making finding alternative energy solutions the number one priority.

Ya'll watch Out--- the Earth is moving---- Oh my goodness, I'm agreeing with Anferny on something that mentioned politics!!!

[Bert Rodgers]

What you have across the board politicaly (meaning both parties and both admin and congressional branches) is short sighted political "fixes" such as $600.00 refund checks and debeat bailout programs.

Has anyone noticed that not a single politician (excluding Ron Paul) has mentioned the value of the dollar as the enormous problem that it is?

W. and the Restupidcans had the chance 6 years ago to make the difference.
Too late now, and hind sight is easy.

But 2 words come to mind anyway. DOMESTIC OIL!

Bert