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re: OT: Let's talk about oil/gas prices
Posted on 1/26/15 at 5:21 pm to piggilicious
Posted on 1/26/15 at 5:21 pm to piggilicious
quote:
it's .89, not 1.89???? was that at kroger
Yep! $1/gallon off!
1
Posted on 1/26/15 at 5:29 pm to Miz Piggy
It's not the 1970's.. OPEC doesn't control the world oil market.
OPEC represents about 1/3rd of the world's oil production or roughly 30 million barrels per day.
The US represents approximately 10 million alone.
OPEC can't cut production because supply exceeds demand. Demand has been flat for the past 5 years but production has increased by over 7 million barrels a day in non-OPEC countries.
OPEC is done. They can't come back.. They produce a non-flexible amount of oil. There are no practical ways for them to increase their production, only slow it down. When prices rise, the markets work to push money into oil exploration and production, like they have in the United States. Oil prices fall, and there are cuts.. and the money moves elsewhere. That's what a market based economy does.
OPEC represents about 1/3rd of the world's oil production or roughly 30 million barrels per day.
The US represents approximately 10 million alone.
OPEC can't cut production because supply exceeds demand. Demand has been flat for the past 5 years but production has increased by over 7 million barrels a day in non-OPEC countries.
OPEC is done. They can't come back.. They produce a non-flexible amount of oil. There are no practical ways for them to increase their production, only slow it down. When prices rise, the markets work to push money into oil exploration and production, like they have in the United States. Oil prices fall, and there are cuts.. and the money moves elsewhere. That's what a market based economy does.
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