SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Gold/Mining/Energy : Strictly: Drilling and oil-field services
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: VLAD who wrote (38427)2/26/1999 7:12:00 PM
From: Crimson Ghost  Read Replies (2) of 95453
 
Vlad:

With oil demand extremely inelastic such that a 5% cut in output probably would send prices up 30-50% within 6 months, one would think that even OPEC would see the logic of hanging together or hanging sepeately. But we have to remember that Saudi Arabia and Kuwait are primarily responsive to US wishes, not the needs of the OPEC or their own citizens for that matter. With the logic of cutting so imperative, the failure of these guys to cut until now is inexplicable unless some of them have a very different agenda than maximizing oil revenues.

My own take is that US does want somewhat higher oil prices and that is why I do expect some modest OPEC cuts next month. But do not kid yourself. If I am wrong and OPEC does not cut, new OSX lows are virtually certain.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News