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"OPEC is not the cause of the (economic) crisis" (http://www.nasdaq.net/publicpages/NewsDetailPublic.aspx?symbol=&storyId=20081024%5CACQDJON200810241004DOWJONESDJONLINE000620.htm)

http://www.cleanmpg.com/photos/data/501/Saudi_King_at_OPEC_minister_meeting.jpgNASDAQ Online - October 24, 2008

This seems like the 1970's in the worst way - Ed.

Vienna -- Eager to rein in a dramatic slide in oil prices, OPEC decided Friday to make a deep cut in oil production, taking 1.5 million barrels a day off global markets as it embarks on the challenging task of managing prices amid a potential global recession.

Defending their decision to cut production, OPEC ministers said they weren't responsible for the turbulent tides gripping markets. "OPEC has nothing to do with the financial crisis as it happened," said Saudi Arabia's oil minister Ali Naimi.

The move immediately sparked a backlash from large oil consumers. Lower oil prices represent one of the few bright spots in a weak global economy…http://www.nasdaq.net/publicpages/NewsDetailPublic.aspx?symbol=&storyId=20081024%5CACQDJON200810241004DOWJONESDJONLINE000620.htm

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You must be subscribed to read more of this article.Very similar article posted.

Hope that helps.

Thank you sir!

OPEC noted that "oil prices have witnessed a dramatic collapse - unprecedented in speed and magnitude."

Of course, the unprecedented speed of the run up to $147 was acceptable. The only nice thing is that high prices in the near term will continue to fuel investment in efficient technologies and alternatives so that, someday, the middle east can again become the unimportant part of the world that it was before oil became essential to civilization.

On Bloomberg TV at noon, Jim Rodgers reminded everyone that proven world oil reserves have been declining 5 percent per year.

He is one of the smartest, most successful investors around.

He pointed out that in hard times, commodities fall a great deal, but usually recover before the stock market does.

He also said that world food supply is at the lowest level in many years...

This article pointed out among other things that cheap oil will halt spending on finding and producing new oil:

If oil prices remain below $70 a barrel for a sustained period, there would be little incentive for oil producing nations to invest in multi-billion-dollar developments to drill for oil at gas aimed at stemming natural depletion and boosting output, analysts say.

Although most OPEC countries are among the world's lowest-cost oil producers, new field developments that are technically more demanding such as Kuwait's planned Lower Fares heavy crude project or Adnoc's Upper Zakum oil field development, are more costly to implement. Higher cost for equipment, raw materials and labor in the past three years have added further upward pressure to project costs.

Vienna-based consultancy JBC Energy estimates that OPEC states need an oil price in the range of $80-100 a barrel to keep most new project developments alive.

New oil will not be coming, which will eventually lead to another cycle of oil shortages and even higher prices.


Harry

Well it may well have been the higher oil prices that caused the housing bubble to burst. How many times was it said in interviews with home owners that they had to choose between their mortgage and filling their tanks? No, OPEC didn't cause the housing bubble to burst because OPEC no longer controls the price. The combination of hedge fund operators, Americans driving big oversized fuel hogs longer distances to work, demand from rising economic powers like China and India and the inability of the oil producers to meet demand caused the price to rise. This rise in fuel prices was the trigger that caused the whole stack of cards that was the housing bubble to collapse.

LOL at OPEC.


-1.5 million barrels

Oil drops -$3.71


HAHAHAHAHA :Banane29:

Oil dropped because oil traders don't believe OPEC will actually lower production that much. Time will tell. The overall trend is that oil becomes scarce and expensive again. That's inevitable.

Harry

The best way to give it back to OPEC is to keep hypermiling and get off oil.

Thanks, Wayne for giving us a solution for international greed.



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While we in the West are concerned we have little time to get off their oil before it run out - OPEC should be even more motivated to diversify their economies from oil.

Well, Gas is cheap again, but i will still be hypermiling. :p :p :p take that ! OPEC! :p