[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?id=080624082624.w60gqlcj&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]

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]

...... 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]

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.

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]

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]

Source: http://www.breitbart.com/article.php?id=080624082624.w60gqlcj&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!

 

[Saturn69]

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

Nuh-uh! George W. Bush sets the price for oil based on the number of baby seals he kills before 9 a.m. on even-numbered Tuesdays in months that start with 'J'. Everyone knows that! Don't you come here posting your so-called 'facts' and shyte like that, the Internet says it's his fault so it must be! hehehehehe I am sooooo kidding.

Amazing the amount of panic, hysteria, idiodicy and widespread conspiracy theorising that $4+ per gallon gas can cause, isn't it. Hey, America! Welcome to the real world! Welcome to the cost of gas being what it's worth! We knew the $1.89 gas couldn't last forever, didn't we? I can tell by the slack jaws, drool and burst blood vessels in the eyes of many that no, we did not think it would come to an end.

And drilling for oil today will not cause the price to drop Friday. Well, maybe on a Friday in June 10 years from now, sure, but not tomorrow or next month or next year. 10 years. Yes, it sucks. We all chose to drive what we are driving therefore we all chose to pay what we are paying. Use less, pay less. It's that simple. I hate it just as much as the next guy, but there is nothing to be done right now about it. The myth of drill on Monday, lower price on Friday, really needs to die. This is just a bump we need to get over; it'll happen. Like Pantene, it won't happen overnight, but it will happen.

 

[Black Rabbit]

Actually, OPEC is largely to blame. Saudi Arabia has 2 million bbd of excees supply. If that supply was put on the market the price would drop by half. It's simple supply and demand.

That being said, there is little reason for Sauid Arabia to lose over 1/3 of its oil revenue and likely over half its profits by making said move. Like in the 70's, we are in an OPEC controlled market.

EDIT: and to anyone calling for increased regulation, we cannot regulate saudi arabia to pump more oil. Only a war (which would be counterproductive) could cause that in the long term. The solution, as it has always been, is battery and algae ethanol funding.

 

[tholland]

I heard a report of huge insider buying happening in refinig companies... which is an indication that some people are betting the refining margin will be improving soon. That would mean oil would come down while gas prices not so much.

I think drilling should start right now, because like Saturn69 says, it will take about 5 years for new sites to start producing oil... at least. I think the faster way to bring oil prices down would be for the US to take action to support the US dollar.

 

[TJ95GAGT]

Nuh-uh! George W. Bush sets the price for oil based on the number of baby seals he kills before 9 a.m. on even-numbered Tuesdays in months that start with 'J'. Everyone knows that! Don't you come here posting your so-called 'facts' and shyte like that, the Internet says it's his fault so it must be! hehehehehe I am sooooo kidding.

Amazing the amount of panic, hysteria, idiodicy and widespread conspiracy theorising that $4+ per gallon gas can cause, isn't it. Hey, America! Welcome to the real world! Welcome to the cost of gas being what it's worth! We knew the $1.89 gas couldn't last forever, didn't we? I can tell by the slack jaws, drool and burst blood vessels in the eyes of many that no, we did not think it would come to an end.

And drilling for oil today will not cause the price to drop Friday. Well, maybe on a Friday in June 10 years from now, sure, but not tomorrow or next month or next year. 10 years. Yes, it sucks. We all chose to drive what we are driving therefore we all chose to pay what we are paying. Use less, pay less. It's that simple. I hate it just as much as the next guy, but there is nothing to be done right now about it. The myth of drill on Monday, lower price on Friday, really needs to die. This is just a bump we need to get over; it'll happen. Like Pantene, it won't happen overnight, but it will happen.

Pay for oil what its worth? Where are you picking your prices from? Europe? Take out the GOVERNMENT imposed taxes and we're about equal.

 

[schmallz]

If OPEC was a US corporation, it would have been dismantled years ago. This type of price fixing should not be allowed to happen.