Article

2009-03-25 Economy

Opec call for oil cuts 'could hinder global recovery'

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Posted by Fred 2009-03-25 00:00|| || Front Page|| [2 views ] Top

#1 Lowest price I have seen for 93 octane at the pump is now $2.30 and rising.

Posted by Jack is Back!">Jack is Back! 2009-03-25 09:14|| 2009-03-25 09:14|| Front Page Top

#2 And the problem is being exacerbated by the falling US$. Ever since the announcement of quantitative easing last week, the US$ has been under pressure and the failed gilt auction in the UK is a sign of things to come. As Rick Santelli said this morning, they won't be able to buy enough treasuries to keep interest rates down - in other words the printing presses will have to move into overdrive shortly to keep down longer term mortgage rates and that is highly inflationary down the track. Nothing good is coming out of this.

Posted by Omoter Speaking for Boskone7794 2009-03-25 09:23|| 2009-03-25 09:23|| Front Page Top

#3 I'd be less worried about OPEC grandstanding if Congress hadn't made the United States a de facto member of the cartel by obstructing exploration & exploitation of offshore & Alaskan resources.

Posted by Mitch H.">Mitch H. 2009-03-25 12:04|| http://blogfonte.blogspot.com/]">[http://blogfonte.blogspot.com/] 2009-03-25 12:04|| Front Page Top

#4 Perhaps it is time to 'nationalize' a little of OPEC, he said with an evil glint in his eye.

Posted by SteveS 2009-03-25 13:25|| 2009-03-25 13:25|| Front Page Top

#5 Just filled up with regular (88 Octane, I think) at $1.71 a bit above normal, it's rising here lately. up around 15 cents in a month and a half or so.

Posted by Redneck Jim">Redneck Jim 2009-03-25 13:28|| 2009-03-25 13:28|| Front Page Top

#6 OPEC countries are desperate for cash. Like everyone else, they spent too much during the good times and are cutting too little now. So, they are trying to get a short term boost in prices. That won't work, and the desperate members will resort to cheating on their quotas to try and make up the difference. That in turn will bring prices even lower.

Of course, none of that may matter at all. Bammo is doing enough damage that we may all be back to horse and buggies soon. Seriously, I'm looking at buying a couple of horses. Maybe a still too...

Posted by Iblis 2009-03-25 13:31|| 2009-03-25 13:31|| Front Page Top

#7 The real danger of an OPEC cut and potential price increase foreign policy wise is Russia, who budgeted for $95 min/oil price in 2009 and $110 in 2010. Right now Russia's economy is slowly starving on it's gas revenues and as these start to draw down they have nothing to fall back on. A resurgence in oil prices will only help them. And right now that's the last thing the US or Europe needs.

Posted by jefe101 2009-03-25 15:17|| 2009-03-25 15:17|| Front Page Top

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