OPEC President: "Oil Prices Won't Come Down."

[Ming]

(AFP) Jun 24 04:26 AM US/Eastern



Oil prices "will not come down," OPEC president Chakib Khelil said Tuesday, assuring that the oil cartel has already done what it can on the matter.

"OPEC has already done what OPEC can do and prices will not come down," Khelil told journalists as he arrived for a meeting with EU energy officials in Brussels.

Source: http://www.breitbart.com/article.php...show_article=1

[civilzues]

wasn't there an article stating that the marginal cost is 1/2 of what we are paying? I really don't know what to believe anymore.

[jwrebholz]

Why should they come down? They know we'll pay this much, so what incentive do they have to lower prices?

OPEC has the world by the short and curlies and they're fully aware of it.

[likearock00]

Prices will stay where they are because that is what the oil companies know we will pay it. As long as the demand is there, the prices will remain and continue to go higher. It doesn't matter how much they produce. Nothing will change it.

[K-1]

Originally Posted by civilzues

wasn't there an article stating that the marginal cost is 1/2 of what we are paying? I really don't know what to believe anymore.

The safest bet is to not believe anyone who stands to make big bucks from oil heading north. This includes OPEC, oil companies, speculators, and investment firms and their ilk.

[logansowner]

OPEC isn't to blame here. We are using less oil now than a year ago, and world use hasn't gone up THAT fast. Supply isn't the problem. Unless they went crazy and doubled output they can't do anything. We are causing the problem ourselves by letting illegal trading continue.

OPEC isn't at fault for this...which is actually bad, because we all know when they were mad at the US they quickly reduced the price when the arguing was over, the drop could take longer now that someone else is to blame.

[K-1]

NEWSFLASH: Oil companies don't set the price, the commodities market does.

[MOGI]

Fantastic...

[CaptainDan]

Originally Posted by logansowner

...... We are causing the problem ourselves by letting illegal trading continue......

It isn't illegal. You've got 300 million very angry consumers (voters) clawing at the government to do something. Nobody, not rich oilmen, not fat cat senators, have the clout to stop full scale arrests from happening IF it were illegal.

The problem is, it IS legal. While I generally don't like the government to stick it's nose into things, sometimes, when freedom runs amok, it needs to be reeled in. Not eliminated, just held to reasonable and fair levels. All freedoms have limits.

[zete]

Originally Posted by CaptainDan

It isn't illegal. You've got 300 million very angry consumers (voters) clawing at the government to do something. Nobody, not rich oilmen, not fat cat senators, have the clout to stop full scale arrests from happening IF it were illegal.

The problem is, it IS legal. While I generally don't like the government to stick it's nose into things, sometimes, when freedom runs amok, it needs to be reeled in. Not eliminated, just held to reasonable and fair levels. All freedoms have limits.

And as soon as those speculators figure there's no more upside, they'll bail and take their money and run to the next commodity they can suck cash out of.

The price will drop, the question is when. There seems to be a lot of resistance to any higher fuel prices and the market knows that if it went nuts governments in the West would be forced to do something by their electorate.

Personally, I figure they'll bail out of oil before fall and switch over to natural gas for the next ride.

[A Bum In A Bus]

Oh Yeah they'll come down when the economy of the entire world tanks, this dude doesn't know his butt from an oil drum. His intentions are to keep the prices up but that mule won't plow, I hope those behind this rediculous sham are rooted out, and locked up for life. They are nothing more than cheap thugs.

[Chaz_23]

What are we going to do now? The holy and just law of supply and demand ain't working. What is the meaning of this? What's next, wil usury come to an end?

[Chaz_23]

legal but unregulated, which means there's plenty of illegal stuff going on.

Regulate the hell out of it and it'll scare the crooks away.

Originally Posted by CaptainDan

It isn't illegal. You've got 300 million very angry consumers (voters) clawing at the government to do something. Nobody, not rich oilmen, not fat cat senators, have the clout to stop full scale arrests from happening IF it were illegal.

The problem is, it IS legal. While I generally don't like the government to stick it's nose into things, sometimes, when freedom runs amok, it needs to be reeled in. Not eliminated, just held to reasonable and fair levels. All freedoms have limits.

[tholland]

Originally Posted by civilzues

wasn't there an article stating that the marginal cost is 1/2 of what we are paying? I really don't know what to believe anymore.

Yes, the marginal cost is the highest cost to remove the "last barrel" of oil from the ground. I heard a couple of opinions yesterday... one was around $50 and the CEO of Anadarko confirmed somewhere between $50 and $75. So, if the supply concerns and rampant speculation where to die off, oil would head towards those prices.

[Ambalanche]

Originally Posted by Ming

Source: http://www.breitbart.com/article.php...show_article=1

Nor does he want the price to come down. They probably view this as a way to bring down the Great Evil Infidels, the US of A!