The price of crude oil is going down: Oil cartels are meeting to keep them from falling..your thoughts?

What do you think about the fact that the oil CARTELS don't think the price of crude oil is high enough??





http://news.yahoo.com/s/ap/20081019/ap_o鈥?/a>





Notice the phrases with asterisks:





';A decision by the Organization of Petroleum Exporting Countries to hold an emergency meeting next Friday ****clearly signaled the group's concern that the recent pummeling of crude prices would erode revenues needed to sustain government spending**** and weather broader fallout from the global financial crisis.





Analysts said some key producers may be eying the meeting as the first step in **reasserting control over the market** 鈥?particularly as the **cartel** has argued that record rallies earlier this year were driven more by speculation than supply and demand.





';What they really want to do is position themselves now in a situation where they can **manage markets** ... a lot more comfortably next year, and potentially for the recovery in 2010,'; said Raja Kiwan, a Dubai-based analyst with the Washington-based oil consultancy, PFC Energy.





But, cut too little, and $80 per barrel will be wishful thinking. ****Some OPEC officials have said prices closer to $100 per barrel are ideal.****





A RECAP: profits needed to sustain govt. spending....control over the markets.....cartels....manage markets....$100 a barrel is ideal





CARTEL: A cartel is a formal (explicit) agreement among firms. **Cartels usually occur in an oligopolistic industry**, where there is a small number of sellers and usually involve homogeneous products. Cartel members may agree on such matters as price fixing, total industry output, market shares, allocation of customers, allocation of territories, bid rigging, establishment of common sales agencies, and the division of profits or combination of these. ****The aim of such collusion is to increase individual member's profits by reducing competition****The price of crude oil is going down: Oil cartels are meeting to keep them from falling..your thoughts?
The problem in the price was from oil futures traders - who must not be running up the price now with so much risk in the market.The price of crude oil is going down: Oil cartels are meeting to keep them from falling..your thoughts?
I feel so bad for the oil producing countries and oil industry. Just another case of redistribution of wealth.
The missing factor in the fiction is the idea that the OPEC cartel really has a monopoly on oil production. The U.S. is not a member of OPEC. Without the cooperation of our politicians, OPEC would have little effect on the price of our oil.





We are sitting on an ocean of oil. The big oil companies have most or our politicians in their pocket. Take a look at where our politicians are receiving campaign contributions, and ask yourself if they are really that ';environmentally sensitive';? I think it has more to do with the campaign contribution, and the future rewards offered for when they retire from politics.





Our politicians have not only stopped the exploration and pumping of our own oil. They have stopped nuclear power plants. They have done everything they could to maximize the prices for their benefactors, the big oil companies.





OPEC is the excuse they give, but it is our own politicians who are responsible for the cost of energy. We have plenty of oil in this country. And we could have a lot more nuclear electric power generating plants. Remember this in November when you consider re-electing your incumbents.
It's not surprising. People have just started to care about what has been a fact for decades, because of skyrocketing prices. It's kind of funny how OPEC is panicked when oil falls below $100 a barrel now, even though it had never reached even close to that level until a few months ago. It's kind of like an addiction. But the fact that they admit their desire to control prices is typical. They aren't believers in free markets, they're despots.
The answer is energy independence. Coal, natural gas, wind, tidal, solar, geothermal, biofuels... Now, not later.
History proved Republicans or their backers control domestic gasoline prices. In the weeks before the Nov. '06 election, gasoline prices came down day by day very steadily. The day after the election, the prices starting creeping back up. Indicating that whoever was in charge didn't get what they wanted out of the election.


You've noticed that once again, gasoline prices are falling in the weeks before an election. In my neighborhood, gasoline prices have come down about $1.30 in the last few months.


http://autos.msn.com/everyday/GasStation鈥?/a>



It won't work.





Demand is going down, the futures market has become over extended, the price will continue falling until it evens out.