Well OPEC says they will cut production to CONTROL the price

[sac-a-lait]

Yep more of that supply and demand law...No matter the market it'll always be a WIN/WIN for Big Oil.

[deathb4disco]

Where are you getting that? This article says the exact opposite.

Opec pushes output to record level

By Carola Hoyos and Javier Blas in London
Published: August 13 2008 03:00 | Last updated: August 13 2008 03:00

"Opec pushed its oil production to the highest level in its 48-year history last month, even as demand was slipping in the US and Eur-ope, the International Energy Agency (IEA) said yesterday.

The combination of surplus supply and weaker demand has pushed oil prices to $113.50 a barrel, down 24 per cent in the last month and the lowest level since late April."

Read the rest here:

FT.com / Home UK / UK - Opec pushes output to record level

[backtocrappie]

The mere threat of drilling by the Americans sent the laundry topped people into a tail spin. They can't seem to reverse the price drops now.

[Crappie Reaper]

sigh Its begins again.

[crappiefarmer]

Yes, they are upping production because OPEC has discovered there is something in the market called DEMAND DESTRUCTION. Unlike a drop in demand, demand destruction does just that. The value of SUVs have gone to zero and people are buying up little cars as hard as they can which will cause a very long period of lower demand. This is a stick in the eye of those OPEC members and they know that those SUVs that have been sold or parked are not gonna come back to drink their gas. Now they are gonna jack up production to lower gas prices to keep some of those SUVs on the road and try to destroy our will to create alternative fuels. We need to put a floor price on gas NOW (at a lower price of course) to keep them from running the alternatives out of business. If We diversify our fuels, and do it right, We will never be in this predicament again. Had We done this after the oil embargoes of the 70's, We would not have this problem now and those rich Arab countries would still be riding their camels and drinking their oil. They also would not be a terror threat. I hope the people of this country don't forget so quickly this time that it can happen again at anytime.

On a different note, I think that You are just as well off to keep your gas guzzler if you can stick with it. I know for some it is just too much money and has killed their budgets but if you buy a small car that now has gone way overvalued because of the demand, then you may end up with a car payment, higher insurance for the newer vehicle, all the while gas prices are dropping and has defeated your purpose of saving money when you could now be spending way more money than you were when gas was $4.

Also If you would like an SUV, now is the time to buy one. Car dealers can't get rid of them and if they are stuck with one, You could get a really good deal on one now. I think the price of used SUVs is gonna actually go up in the next couple years instead of depreciating. Just because the price of gas is gonna go back down where you can afford to drive one again. I think Detroit has messed up again because they have retooled for smaller cars. It looks like a good decision now and may be but they have gutted their pick up truck and SUV plants to make the smaller cars. What will they do when demand comes back for the big vehicles? They will have to spend billions again on new plants or retooling. I hope they have taken notes from some of the foreign car makers and made their plants versatile where they can change production to changing demand. Thats why Toyota has been weathering the storm better and kicking our butts.CF

[deathb4disco]

Had We done this after the oil embargoes of the 70's, We would not have this problem now and those rich Arab countries would still be riding their camels and drinking their oil. They also would not be a terror threat.

This is the worst part of high gas prices: the most horrible countries on Earth are the ones profiting.

Also If you would like an SUV, now is the time to buy one. Car dealers can't get rid of them and if they are stuck with one, You could get a really good deal on one now.

Good point. Clark Howard was talking about this recently.

[sac-a-lait]

Deathb4...I guess you need to catch up on current events

OPEC: Will Cut Production To Increase Oil Prices | ZardozZ News and Satire

or try

With OPEC Planning to Cut Production, the Decline in Oil Prices May Not Last

YEP DB$D, regular ole supply and demand working at it's finest.

[Cane Pole]

What we need is an All American like Jessee Ventura running the show. No doubt he would body slam the Opeckers.

We are capable of handling and ending this group of rag heads. We just don't have the will power.

[Slipped Cork]

How do you guys find all this info?I get mine from fox and they dont get that indepth.

[deathb4disco]

YEP DB$D, regular ole supply and demand working at it's finest.

Yes, it is. If you understood anything in those two articles, you'd see that.

From the second article you posted:

"However, as economic growth stagnated in the developed world and cash-strapped American consumers cut back on expensive gasoline purchases (translation: demand decreased) that production (translation: supply) increase turned into a glut and oil prices plunged by more than $30 a barrel. Now that crude is down significantly from its record peak, OPEC is getting ready to take some of the excess supply off the market." (translation: too much oil and not enough buyers.)

That's a textbook example of how markets work.