Oil rises on Opec production curb

  peter99co 09:32 10 Sep 2008

Trust someone to chuck in a spanner

click here

  newman35 10:57 10 Sep 2008

It's just the result of forming a giant monopoly, meaning they (OPEC) can strictly control the price of the commodity that only they supply.
Only when different forms of 'energy' can be produced will we be off their hook - but that isn't going to be in any near future.

  peter99co 19:33 10 Sep 2008

I thought our Gordon had spoken to them nicely recently to ask them to increase oil supply?

  newman35 19:53 10 Sep 2008

You really DO believe that the OPEC 'club' does not act as a monopoly, in the interests of it's members? Interesting!

  newman35 22:27 10 Sep 2008

"It's a cartel which tries to balance oil production and price in its members' interests."

In it's member's interests - says it all, price-fixing under a different name - 'cartel' sounds so much nicer!

  newman35 10:06 11 Sep 2008

You have difficulty keeping to your own defined terms, monopoly and cartel.

A monopoly exists if there is sufficient control over supply - it does NOT require to be 100%. So, effectively, OPEC does have a monopoly.

  peter99co 12:29 11 Sep 2008

I think the spanner is still bouncing round in the gearwheels.

  newman35 15:03 11 Sep 2008

Fair enough, you accept my interpretation of monopoly, but then say you regard OPEC as 'not having sufficient control' to be one - unbelievable!
OPEC is possibly one of the most controlling oligopolies on the planet. Just because prices are 'falling' a little, at present, doesn't qualify as proof that they are not in control.

  dms_05 15:29 11 Sep 2008

The price of oil is largely determined by the spot pricing of specific crude streams in specific markets. This price goes up and down depending upon supply and consumption. OPEC can have some effect on supply but isn't the only supplier, for example the Russians are not OPEC members but are theoretically very large suppliers of oil (and gas).

The final decision on price is in the hands of the buyer, he can either pay or go without that specific shipment, however when more than one buyer is chasing the same product in a short market you will see the effect of a free market, and the price will increase.

I didn't ever hear anyone complaining the poor Arabs weren't getting a fair return for their oil when prices were a fraction of what they are now, so after numerous years of cheap oil we now are paying realistic prices for crude. In a free market that's what happens - prices go up and down and at the moment they are up.

My experience tells me the price of crude has been predominantly low over the past 35 years with a few blips due mainly to military action. This time its suggested that the blip is due to Westerners taking gambles on the short term price movement of oil, which makes it look as if we are the authors of or own problems and the benefits are going to the oil producers (some of whom may be Arabs but not all).

  newman35 16:22 11 Sep 2008

"Don't put words in my mouth, please"

Clever, but you put word(s) in your own mouth by changing your statement with the inclusion of one VERY important 'IF' !!

Your original statement "even I accept your interpretation of 'monopoly'", which changes to "even IF I accept..." in the next post.

As you so rightly, earlier, said "words mean what they mean".
'Cake and eat it' springs to mind!

  newman35 16:27 11 Sep 2008

How can you accuse me (like others in your sweeping statement) of using far too much oil??
You know nothing of my lifestayle or habits, yet mete out these ludicrous cover-all statements with little or no proof - a sure sign of 'dodgy ground' argument.
Are you in politics, perhaps??!!

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