• Due to a glitch in the old vBulletin software, some users were "banned" when they tried to change their passwords at the end of February. This does not apply after the site was converted to Xenforo. If you were affected by this, please us viua the Contact us link in the footer.

Oil prices 'will not come down' says OPEC boss.


Champa

Member
Joined
Oct 14, 2007
Messages
33
The cost of a barrel of crude oil has edged closer to its all-time high after OPEC president Chakib Khelil warned that oil prices “will not come down”. Ahead of a meeting with EU officials in Brussels today, he said that the cartel had done all it could to ease prices.

His comments pushed up benchmark crude in London by $1.24 to $137.15 a barrel - it hit an all-time high of $137.69 a barrel on June 6. The spot price - the cost of buying a barrel of oil for delivery that day - has risen close to $140.

European Union Energy Commissioner, Andris Piebalgs, said he was “not convinced” speculators are to blame and repeated his call for the Organization of Petroleum Exporting Countries to pump more oil and scrap production quotas. But OPEC Secretary-General Abdalla el-Badri said: “The market is currently hijacked by speculators,” including hedge funds. “There is no shortage of supply as I said before.”
rest here:

http://www.telegraph.co.uk/money/main.jhtml?view=DETAILS&grid=&xml=/money/2008/06/24/bcnoil124.xml
 


CelticAtheist

Active member
Joined
Jun 5, 2008
Messages
112
The bombs certainly will fall, on OPEC countries if they keep this BS up.
 

Milano

Member
Joined
Jun 24, 2008
Messages
28
How many litres of oil are in a Barrel of oil (check it out and do your maths and you will see they get less than the price of bottled water per Litre) Now look at what our Beautiful government takes per Litre and also the VAT Content? Oil is very cheap
 

SPN

Well-known member
Joined
Feb 2, 2004
Messages
16,891
CelticAtheist said:
The bombs certainly will fall, on OPEC countries if they keep this BS up.
What BS?

Oil Discoveries peaked in 1964.

Oil production peaked in May 2005.

This is a Geological fact, not BS ;)
 

Milano

Member
Joined
Jun 24, 2008
Messages
28
If Water Discoveries peaked in 1964., what price would i Litre be now ? and do not BS be Real ( do you know how many Litres of oil is in one barrell it is 159 Litres and tahat is not Bs it is Fact!
 

CelticAtheist

Active member
Joined
Jun 5, 2008
Messages
112
SPN said:
CelticAtheist said:
The bombs certainly will fall, on OPEC countries if they keep this BS up.
What BS?
Oil Discoveries peaked in 1964.
Oil production peaked in May 2005.
This is a Geological fact, not BS ;)
They certainly can increase supply a small bit to ease the prices, if not a large increase to halt them.
The economies are going down the crapper otherwise.
 

crocked

Active member
Joined
Jun 25, 2008
Messages
171
Ye are all comenting like someone will interfer and fix the problems!!!! What you fail to realise is that it won't be fixed if all people are going to do is talk about it. Demonstration is needed... :|
 

evercloserunion

Well-known member
Joined
Dec 10, 2006
Messages
819
SPN said:
CelticAtheist said:
The bombs certainly will fall, on OPEC countries if they keep this BS up.
What BS?

Oil Discoveries peaked in 1964.

Oil production peaked in May 2005.

This is a Geological fact, not BS ;)
Some people just like to think that dropping bombs will fix any problem.
 

Eddie Collins

Well-known member
Joined
May 23, 2005
Messages
1,917
SPN said:
CelticAtheist said:
The bombs certainly will fall, on OPEC countries if they keep this BS up.
What BS?

Oil Discoveries peaked in 1964.

Oil production peaked in May 2005.

This is a Geological fact, not BS ;)
The fact is that the OPEC cartel restricts oil production to force artificial price increases, which is totally against free trade principles and should be made illegal.

Else the west should form a cartel and restrict the supply of essentials such as food - or bomb the b@stards.
 

SPN

Well-known member
Joined
Feb 2, 2004
Messages
16,891
CelticAtheist said:
SPN said:
CelticAtheist said:
The bombs certainly will fall, on OPEC countries if they keep this BS up.
What BS?
Oil Discoveries peaked in 1964.
Oil production peaked in May 2005.
This is a Geological fact, not BS ;)
They certainly can increase supply a small bit to ease the prices, if not a large increase to halt them.
The economies are going down the crapper otherwise.
Any economies that are predicated on cheap oil are going down the crapper because the amount of oil available next year will be less than the amount available this year. The amount of oil available in 2010 will be about 5% less than was available last year.

The Saudi's promised to increase production to 12.5 million barrels per day in 2004. They promised to increase production to 12.5 million barrels per day in 2005. They promised to increase production to 12.5 million barrels per day in 2007, and they have promised to increase production to 12.5 million barrels per day in 2008.

Unfortunately, their actual production of physical oil is in decline and they are very unlikely to ever hit 10 million barrels per day - never mind 12 million.

But you are right about economies going down the crapper!
 

madura

Active member
Joined
May 26, 2006
Messages
266
Excluding the extreme measures proposed above, what other means can Western countries use to exert pressure on OPEC?

And are we sure the West speaks with one voice on this? Perhaps there are vested interests in Western countries that would like to keep the price of oil high.
 

SPN

Well-known member
Joined
Feb 2, 2004
Messages
16,891
madura said:
Excluding the extreme measures proposed above, what other means can Western countries use to exert pressure on OPEC?

And are we sure the West speaks with one voice on this? Perhaps there are vested interests in Western countries that would like to keep the price of oil high.
Exert pressure on OPEC to do what exactly?

They can't physically pump any faster. We are at maximum production capacity, and will shortly begin to move down the slope with less production every year than there was the previous year.

If you want to see prices drop, get people to use less.
 

Eddie Collins

Well-known member
Joined
May 23, 2005
Messages
1,917
SPN said:
madura said:
Excluding the extreme measures proposed above, what other means can Western countries use to exert pressure on OPEC?

And are we sure the West speaks with one voice on this? Perhaps there are vested interests in Western countries that would like to keep the price of oil high.
Exert pressure on OPEC to do what exactly?

They can't physically pump any faster. We are at maximum production capacity, and will shortly begin to move down the slope with less production every year than there was the previous year.

If you want to see prices drop, get people to use less.
Don't believe a word of it.

They certainly can pump oil faster - else why have a cartel which allocates restricted quotas to members.
 

SPN

Well-known member
Joined
Feb 2, 2004
Messages
16,891
Eddie Collins said:
SPN said:
They can't physically pump any faster. We are at maximum production capacity, and will shortly begin to move down the slope with less production every year than there was the previous year.

If you want to see prices drop, get people to use less.
Don't believe a word of it.

They certainly can pump oil faster - else why have a cartel which allocates restricted quotas to members.
The US had a cartel until 1973. They hit peak production, and once that happens there is nothing a cartel can do anymore.

You mightn't want to believe it, but it is true.
 

Eddie Collins

Well-known member
Joined
May 23, 2005
Messages
1,917
SPN said:
Eddie Collins said:
SPN said:
They can't physically pump any faster. We are at maximum production capacity, and will shortly begin to move down the slope with less production every year than there was the previous year.

If you want to see prices drop, get people to use less.
Don't believe a word of it.

They certainly can pump oil faster - else why have a cartel which allocates restricted quotas to members.
The US had a cartel until 1973. They hit peak production, and once that happens there is nothing a cartel can do anymore.

You mightn't want to believe it, but it is true.
OPEC is a cartel which allocates restricted quotas to members ie prevents them producing to their full capacity - fact.
 

SPN

Well-known member
Joined
Feb 2, 2004
Messages
16,891
Eddie Collins said:
OPEC is a cartel which allocates restricted quotas to members ie prevents them producing to their full capacity - fact.
All OPEC members are currently producing to their maximum capacity (except Iraq and Nigeria). Fact.

Global Oil production peaked in May 2005. Fact.

Production is going to decrease, so prices are going to rise until demand and production get into equilibrium. Fact!
 

madura

Active member
Joined
May 26, 2006
Messages
266
SPN said:
madura said:
Excluding the extreme measures proposed above, what other means can Western countries use to exert pressure on OPEC?

And are we sure the West speaks with one voice on this? Perhaps there are vested interests in Western countries that would like to keep the price of oil high.
Exert pressure on OPEC to do what exactly?

They can't physically pump any faster. We are at maximum production capacity, and will shortly begin to move down the slope with less production every year than there was the previous year.

If you want to see prices drop, get people to use less.
I'd have no difficulty with that option. However, if it's only applied in the West or (more likely) in EU countries, the fundamental problem will not go away.
 

Eddie Collins

Well-known member
Joined
May 23, 2005
Messages
1,917
SPN said:
Eddie Collins said:
OPEC is a cartel which allocates restricted quotas to members ie prevents them producing to their full capacity - fact.
All OPEC members are currently producing to their maximum capacity (except Iraq and Nigeria). Fact.

Global Oil production peaked in May 2005. Fact.

Production is going to decrease, so prices are going to rise until demand and production get into equilibrium. Fact!
Until the illegal cartel is broken up and all quotas and restrictions removed, you cannot say what the maximum production capacity is.
 

seabhac siulach

Well-known member
Joined
Feb 6, 2008
Messages
415
If the price of oil is being driven by demand and not speculation (as the EU commissioner seems to think), can someone explain how that demand has made the price of oil jump by approx. 35% since the 1st April (see plot below), i.e., in a period of a little less than three months. Now I understand that demand is rising in China/India but is it rising by 35% in 3 months? Hardly. So, demand does not fully explain it. The recent spike in oil price cannot be explained by demand alone as demand does not usually spike so suddenly. It is clear that speculation, commodity trading in oil as a hedge against the dollar's fall, is another major reason why oil remains stubbornly high. However, the dollar's fall has plateaued recently, certainly since April 1st, and still oil goes up. In this case, can speculation explain the oil price rises? [If speculation in oil is taking place, there is a case to be made for introducing a windfall tax on oil trades so as to control somewhat this damaging activity]. Another thing that affects the price of oil, and one rarely mentioned in the media, is the real threat of war against Iran and any subsequent disruption of oil supply. If this threat is directly related to the price of oil then are we to assume that the threat of war has increased substantially since last April?

 

TheBear

Active member
Joined
May 25, 2004
Messages
234
<Mod>Moved to the Economy forum.</Mod>
 

New Threads

Popular Threads

Most Replies

Top