So, OPEC is reducing output by 3% effective immediately...hummmm

[MazeRat7]

The cover story is they are trying to boost sagging oil prices by cutting production close to a million barrels/day... (as if $60/bbl is a "sagging price") jezzzzz

So riddle me this batman ?

Why do you think they are they doing this now ? Is the timing important or just business as usual for them ?


http://www.thestreet.com/markets/commodities/10313257.html

MZr7


edit: typo

[nickinSTL]

1. "trying to boost sagging oil prices"

:wtf:

I know oil prices have dropped...but it's not like they're LOW. :mad:

[bryant69]

2. If you favor the OPEC was dropping prices to elect Republicans

theory, perhaps they are now raising prices because they figure Foley's Folly has ended any chance of that, so why not make some money now.

Bryant
Check it out --> http://politicalcomment.blogspot.com

[leftyladyfrommo]

3. Shoot. And our prices just dropped to 1.939 this morning.

They probably will go right back up again tomorrow.

[Freddie Stubbs]

4. Chavez and other OPEC leaders want higher oil prices

[htuttle]

5. I don't think Saudi Arabia holds the clout in OPEC that it used to

[shadow 99]

7. They want to keep the price up; their Princes spend a lot. NT

[AndyA]

6. Could be more bad news for the GOP.

Guess Bush doesn't have any clout with them anymore. Higher gas prices will not make for happy voters in November. If they cut production now, prices should go up by then, too.

[Nickster]

8. In a nutshell, this is my opinion....They need to keep it above 60 so that

they can keep the current cycle in place.

Dubya needs to fund his spending habits. So he can either A) raise taxes or B)allow the taxpayers to pay through the nose at the pump.

When taxpayers pay more at the pump, that money lines the pockets of the Saudis primarily. The Saudis then need to stash all that extra cash. They turn to the US because of the security of US Debt and the attractive interest rate. So Dubya gets the funding he needs for his deficit spending habits and doesn't need to raise taxes (heaven forbid). I'm sure that us handing over that extra money to the Saudi Empire buys us a certain amount of "hush" on the part of the royal family there, a War Tax if you will. Can you imagine what would happen in the Middle East if the royal family actively started calling for the removal of all western troops from the lands of their brethern? The Saudis can call on a whole lot of crazy if they chose too.

If the Saudis let the current price drop further, that cuts into the amount of money that can be extracted from the American public and used for Dubya's budget nightmares. Also, remember that the big 3 oil companies in the US aren't doing too shabbily either. So I'm sure they have a certain amount of interest in keeping the prices elevated.

[pampango]

9. Other...

Up until a couple of days ago, the conspiracy theory seemed to be that Bush, with the help of the big oil companies and Saudi Arabia, were lowering oil and gas prices to help republicans at the polls. You would think that these guys would know how to read a calendar and would realize the election is next month.

Couldn't just vote that this is just the market and selfishness at work, without pointing out that those same forces are always at work. OPEC wants to maximize profits, just like Hugo does.

[Extend a Hand]

10. or maybe it's to cover up the fact

that the Saudi's are in decline and can't raise production.

[gkhouston]

11. and that 3% reduction will cause gas prices to skyrocket in a month?

Color me unsurprised.

[The2ndWheel]

12. They're running a little low on supply? nt

[yurbud]

13. preparing to profit from Iran War. It would look gauche to cut production

AFTER the air strikes start. This way, it will look like an accidental policy decision that coupled with the temporary loss of Iran's oil doubles the price per barrel yet again.