Why do OPEC want to push up the price?

[groucho]

Is there any reason beyond the obvious? It's on the news now.

[thinfourth2]

Apart from making more money?

Well their pet hamster might of told them to do it

[oilydan]

groucho said:

Is there any reason beyond the obvious? It's on the news now.

http://news.bbc.co.uk/2/hi/middle_east/7687107.stm

The BBC said:

...effectively halving the country's income from oil, which accounts for the vast majority of both its export earnings and government revenue.

Petropars, a subsidiary of the National Iranian Oil Company (NOIC), has even warned that it could go into bankruptcy.

[Jasandjules]

groucho said:

Is there any reason beyond the obvious? It's on the news now.

I can't think why anyone selling a product would want to charge more for it, it's not like they would benefit hugely from an increase in the price.....

I open it to the floor...........

[Westy Pre-Lit]

$68 for a barrel, wonder how long that will take to filter through.

[off_again]

Some countries (news is reporting Venezuela and Iran) want the prices to go up. However, what they don't quite report on is that other BIGGER oil nations want it about the current levels. Stable prices mean easier trading and its still higher than 10 years ago so it ensures that demand keeps it flowing. What is better? High price but slackening demand or mid-price with steady demand? Forcing it too high runs the risk of a big drop off of demand and hence price collapse later - not a good idea for economies.

What the news dont report on is that countries such as Iran and Venezuela need massive cash injections into their economies to keep the growth and stabilise their currencies. They run the risk of inflation if they are not careful and this could have a disastrous result...

Interesting times, but the analysts say a small cut will help stabilise the price and keep it at a reasonable price. Funny thing is that demand in Europe is DOWN and its the same in the US - yep, we are using less oil than ever before. The growth in developing nations is high, but no way near as much as the 'peak oil' people say.

Funny....

[AJI]

Why is OPEC still seen as a legal operation ?

Is there any other product that is allowed to have different companies from different countries get together in a cartel and attempt to force up the price of their product ?

[nownek]

AJI said:

Why is OPEC still seen as a legal operation ?

Is there any other product that is allowed to have different companies from different countries get together in a cartel and attempt to force up the price of their product ?

How would you stop them?

[emicen]

nownek said:

AJI said:

Why is OPEC still seen as a legal operation ?

Is there any other product that is allowed to have different companies from different countries get together in a cartel and attempt to force up the price of their product ?

How would you stop them?

Exactly. Look how well the Iraq debacle worked out for an example of trying to gain control of an oil producing nation.

Kissing some Russian and Brazillian arse to move away from middle eastern dependency would be a good start.

[AJI]

nownek said:

AJI said:

Why is OPEC still seen as a legal operation ?

Is there any other product that is allowed to have different companies from different countries get together in a cartel and attempt to force up the price of their product ?

How would you stop them?

Well I was just thinking that if other companies got together to form coallitions together to control the global market for their products.... then somebody like the UN would step in to force the rule of fair trade and capitalism and competition etc. etc.

[Chilli]

Westy Pre-Lit said:

$68 for a barrel, wonder how long that will take to filter through.

Now below $65. I don't get it. OPEC will cut production by 100m a day, so the price keeps going down? I know demand is slowing, but it's not stopping.

[plasticpig]

AJI said:

nownek said:

AJI said:

Why is OPEC still seen as a legal operation ?

Is there any other product that is allowed to have different companies from different countries get together in a cartel and attempt to force up the price of their product ?

How would you stop them?

Well I was just thinking that if other companies got together to form coallitions together to control the global market for their products.... then somebody like the UN would step in to force the rule of fair trade and capitalism and competition etc. etc.

Diamonds are controlled by a simmilar cartel. Both oil and diamond prices are controlled by restricting supply.

[Kuroblack350]

I heard on the news this morning that OPEC controls %40 of the world's oil supply... That's interesting, but leads me to ask:

1) Where's the other %60 coming from? (that's a lot of oil)
2) Who's pricing that?

Also heard that Russia and a couple of others are considering forming a Gas cartel - great, Russian led Gas cartel...

[Mr POD]

Jasandjules said:

groucho said:

Is there any reason beyond the obvious? It's on the news now.

I can't think why anyone selling a product would want to charge more for it, it's not like they would benefit hugely from an increase in the price.....

I open it to the floor...........

Either, to make more money from less product (which is finite apparently)
or to De-stabilise the free world and blah blah blah.

[Schermerhorn]

OPEC

Oppression
Persecution
Execution
Criminal

[nownek]

plasticpig said:

AJI said:

nownek said:

AJI said:

Why is OPEC still seen as a legal operation ?

Is there any other product that is allowed to have different companies from different countries get together in a cartel and attempt to force up the price of their product ?

How would you stop them?

Well I was just thinking that if other companies got together to form coallitions together to control the global market for their products.... then somebody like the UN would step in to force the rule of fair trade and capitalism and competition etc. etc.

Diamonds are controlled by a simmilar cartel. Both oil and diamond prices are controlled by restricting supply.

In a way, you've answered your own question- companies are subject to the laws in the countries in which they operate and can be controlled. There are lots of examples of countries banding together to engage in anti-competitive activity whether by OPEC type cartels or EU type tariffs and trade barriers. It's much harder to bring states into line particularly when they're acting in a block and claiming national interest.

[Diderot]

nownek said:

AJI said:

Why is OPEC still seen as a legal operation ?

Is there any other product that is allowed to have different companies from different countries get together in a cartel and attempt to force up the price of their product ?

How would you stop them?

Dream up some fantasy about CO2, MMGW, polar bears and the evil motorist.

[bobbylondonuk]

OPEC has oil to sell.....customers have to pay their price....they are free to decide their own prices...if its too costly...move to a cheaper supplier...problem solved.


if you cant find a cheaper supplier with same quality of goods....tough luck.

[FourWheelDrift]

nownek said:

AJI said:

Why is OPEC still seen as a legal operation ?

Is there any other product that is allowed to have different companies from different countries get together in a cartel and attempt to force up the price of their product ?

How would you stop them?

Invade OPEC.

[esselte]

bobbylondonuk said:

OPEC has oil to sell.....customers have to pay their price....they are free to decide their own prices...if its too costly...move to a cheaper supplier...problem solved.


if you cant find a cheaper supplier with same quality of goods....tough luck.

So you believe cartels and price fixing are good things?