Wow... rocket science.. though I'm sure that many DO think OPEC -or
Dubya- had something to do with the price per bbl, the TRUTH for anyone
who'd bother to think is that the price is pure speculation driven.
The days of OPEC being able to directly drive the price are long gone...
the short term money dealers have usurped them.
Though the Saud's certainly have the means to influence it by playing the
market through front-men.
Hell, the President of Iran has more influence on it, right now, than
everyone else combined, if you just pay attention.
Demand, though is NOT going to disappear... just the RATE of Demand
increase will slow. And I think you'd see the floor drop out quick if
China announced they were within 5 years of switching to new-tech nukes
for power generation.
Back a few years, when gas was bouncing between 1.25 and 1.50, I thought
it was stupid of the OPEC states to allow it. Thought oil should have
been a stable 40-45 per bbl, though it was dropping under 20 for brief
Yeh, I'm a Krusty old Geezer, putting up with my 'smartass' is the price
you pay..DEAL with it!
On Thu, 18 May 2006 12:06:45 GMT, Backyard Mechanic
Thought i had seen all the conspiracy stories until a nationally
syndicated tv show had a guest on who claims that no planes hit the
WTO or Pentagon, and that Osama is an actor hired by the
OPEC still continues to set the price, but that price falls within a
range which the commodities speculators control, along with
competition, because it's still going to be based on the laws of
supply and demand. OPEC knows they can't charge too much, or buyers
turn to other sources, as well as oil producers investing more into
exploration and recovery; or worse, to alternatives. But, they also
know at what point their greatest profit margin is.
So do the terrorists who might successfully interrupt the flow of oil
(just as Katrina did with damage to off shore rigs).... which is what
speculators are betting for or against.
If, the price reaches a critical stage, it may force a change in
lifestyles, which could force a switch to alternatives, enforcement of
mpg advances, location and extraction from new fields, etc, reducing
the dependence on middle eastern oil. With the completion of the Three
Gorges Hydro plant, China may see a change in the near future. They
are already beginning to install air standards (most cities today are
reminders of the eastern European nations).
1965 Ford Mustang Fastback 2+2, Vintage Burgundy
Motorsforum.com is a website by car enthusiasts for car enthusiasts. It is not affiliated with any of the car or spare part manufacturers or car dealers discussed here.
All logos and trade names are the property of their respective owners.