Re: OPEC Strategy
Hi RIK, I think you're right to look hard at OPEC statements and actions for ways these serve to advance their purposes. These guys aren't the pack of half-wits some would have us believe.
regards,
diana
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Here's a March 25 post from labpuppy about another Venezuelan statement.
(Poster is one smart cookie, imho.)
LABPUPPY OIL SERVICE BOARD
Posted By: diana g (ip188.troy3.ny.pub-ip.psi.net)
Date: Thursday, 3/25/99, at 7:38 a.m.
In Response To: Will, "nitwit" is too polite a word (Cobalt Blue)
Hi Cobalt Blue, Will, et al,
Will wrote <<<"...However, the Venezuelan oil minister made comments today that if oil prices were to rise quickly over the next few months that OPEC might meet early to discuss possibly increasing oil production. You'd think these "nitwits" would have learned something from the past 12-18 months of miserable oil prices!...">>>
I think this and other seemingly counter-productive statements from OPEC members could be smarter than they appear on the surface.
One of the long term goals of OPEC must be to protect market share. It could be that statements like this are aimed at effecting the actions of other producers.
If I were OPEC, I would want other producers to believe that I might increase production at any time. This would discourage investment in e+p, thereby protecting my members' market share.
The ideal situation from OPEC's perspective, imho, would be a fairly stable oil price which seemed constantly to be teetering on the brink of collapse, but never did.
regards,
diana |
