View Full Version : OPEC Decides To Slow Oil Production


Family Ties Forever!
09-10-2008, 12:13 AM
Gas prices might go back up.

link (http://www.click2houston.com/money/17418320/detail.html)

OPEC Decides To Slow Oil Production
Oil Prices Closed At $103 A Barrel On Tuesday

Posted: 8:40 am CDT September 8, 2008
Updated: 9:00 pm CDT September 9, 2008

OPEC oil ministers have decided to curb overproduction by more than 500,000 barrels.

The move is a compromise meant to avoid new turmoil in oil markets while at the same time reflecting OPEC attempts to prevent prices from falling too far. Crude prices have dropped nearly 30 percent since spiking to nearly $150 a barrel in July.

An OPEC statement issued after oil ministers ended their meeting early Wednesday said the organization agreed to produce 28.8 million barrels a day. OPEC President Chakib Khelil said that quota in effect meant that member countries agreed to cut back 530,000 barrels a day in overproduction.

Since crude surged to a record $147.27 a barrel on July 11, it has tumbled more than $40. Over the summer, OPEC was resisting calls by the U.S. and other Western nations for more oil. Oil ministers, however, blamed speculators and a weak U.S. dollar for crude's rise.

Oil prices closed at $103 a barrel Tuesday for the first time since early April.

Copyright 2008 by The Associated Press. All rights reserved.

AB
09-10-2008, 06:38 PM
^ Just what we need!

JulieSomoski
09-10-2008, 07:21 PM
Damn, I knew $3.69 a gallon was too good to be true ;)

Chelsea
09-10-2008, 07:40 PM
Guess what: If the market decides that $100 is still an economically infeasible price, the price of crude will *continue* to go down until it reaches an equilibrium point.

The ride should stop somewhere, I'm guessing, in the $80-$100/barrel range and in $3/gallon territory.

JulieSomoski
09-10-2008, 07:54 PM
Guess what: If the market decides that $100 is still an economically infeasible price, the price of crude will *continue* to go down until it reaches an equilibrium point.

The ride should stop somewhere, I'm guessing, in the $80-$100/barrel range and in $3/gallon territory.

If gas were every to go below $3 again, I'd be shocked and in disbelief at the same time. I think, though, that we won't be seeing that happen for awhile yet. It'll probably stay in the $3.50 range if it doesn't go back up.