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: Razorbak who wrote (38479)2/28/1999 2:00:00 PM
From: SliderOnTheBlack  Read Replies (1) of 95453
 
Razor; ie: << the "Cartel Dilemma">>

<<...the only way to instill long-term discipline amongst a cartel is for one or two of the largest players to punish the cheaters by flooding the market and driving prices precipitously down in the short term to enforce compliance.>>

I would think that if that was/is the Saudi intention - then we may now be at the pivotal point given the upcoming OPEC meeting. It just might be the last attempt to force new cuts, or total adherence to prior cuts.

But, if OPEC doesn't agree to new cuts, or total compliance; are the Saudi's really in a position to take the political, social and financial risks of playing their ''trump card'' any further ?

Seems like we've had more than a few members cry uncle; if Iran's baseline quota problems can be resolved, then the expectations of better compliance, or new cuts looks high to me.

Also; not that I would want this solution; but if we would have a new freefall in crude prices to $8, or even the prolonged enviroment of depressed prices of late; I believe that a member state, or two, may solve the problem with uncooperative member states via a terrorist solution (not a traditional military action). The destruction of tankers, pipelines, or production facilities is not beyond expectation imho. I don't think many people realize how volatile the situation is becoming in the ME.
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