Full Version: Opec Cuts Effecting Prices
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Once again OPEC's production cuts are beginning to effect oil prices. We're seeing a rise in price per barrel as well as a rise in the price at the pump. Low prices could be behind us for good, as further production cuts as well as a slowly recovering economy may continue to fuel international demand for oil.
So it is OPEC and the economy slowly regaining strength that is causing rising gas prices? Wow, and all this time I thought since Bush is back in Texas we were on our way to $1 gallons for good were he could not use his power and raise gas prices for his oil buddies.
Oilwatch Monthly reports that despite significant cuts “supply is still significantly higher than demand.” On March 15, “OPEC agreed that no further oil cuts in oil production will be made and that it will focus in the coming months on complying with previously announced cuts of 4.2 million bpd – 80% of which has been achieved to date in circumstances where OPEC’s price target of US$70 has not been achieved, and where OPEC now thinks it ‘has to live with’ a US$45 price.”
QUOTE (junior17 @ Apr 1 2009, 11:31 AM)  Oilwatch Monthly reports that despite significant cuts �supply is still significantly higher than demand.� On March 15, �OPEC agreed that no further oil cuts in oil production will be made and that it will focus in the coming months on complying with previously announced cuts of 4.2 million bpd � 80% of which has been achieved to date in circumstances where OPEC�s price target of US$70 has not been achieved, and where OPEC now thinks it �has to live with� a US$45 price.� Thats for that info junior17, it seems like oil prices are on a consistent upward trend again, I'm looking forward to seeing how high they'll go this time.
The Organization of Petroleum Exporting Countries, producer of almost 40% of the world oil, will likely hold output steady at its next meet in Vienna in September amid ongoing market uncertainty.
Oil price hikes affects everybody especially the least developed countries. The problem with oil price is the authority to regulate its rising and falling.
Unfortuantely it looks like when you look at the OPEC crude oil price the economic crisis was just a short-term break. The jump in price from 2009->2010 seems to reinstitute the trend of ever rising prices which existed before 2008.
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