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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: Selectric II who wrote (1951)	9/18/2000 1:36:35 AM
From: Sully-	Read Replies (1) \| Respond to of 65232

Based on your reply/questions, apparently you did not read the info in my post or follow the link. The costs of extraction have gone down low enough to make it profitable to pump well below $20/bbl. It will take a significant imbalance of supply to drop oil 40-50% from current prices. There is abundant supply that can & is being brought on line at these prices..... including a lot of non-OPEC oil. IMO, oil, like almost any commodity, is supply/demand driven. When a commodity is at historically high prices & there is abundant supply.... price will motivate those with the supply to make their supply available...... Sure, manipulation can be in play.... doubt it will keep up for long..... greed rules.... cheaters will cheat...... if you are conspiring with others to artificially manipulate, how can you be sure your co-conspirators are not sneaking a few $$$ on their own??? OPEC cheats..... conspirators holding back now will only bring more oil on line from other sources.... will they produce less to keep prices high??? won't that cut into their take???? sort of screws up their plan, don't you think? You said.... ....<<That's a reason why the Saudi's said we should lower our fuel taxes -- >>.... I believe that wasn't the Saudi's.... they have been more inclined to increase production & pro-US.... Looks like it was Kuwait.... .....<<In fact, Gulf states, like Kuwait believe they have already done enough to help the West.>>...... Wonder if they might have a reason..... .....<<Kuwait has warned that oil prices could go higher yet with the onset of winter in the northern hemisphere making new demands on fuel. Kuwait's oil minister says his country is already producing at full capacity and has called on Western governments to lower their fuel taxes.>>..... Meanwhile Saudi Arabia might be inclined to profit & help their friends..... .....<<Amongst Arab producers, only Saudi Arabia and the United Arab Emirates are thought capable of pumping significantly more oil.>>..... news.bbc.co.uk Can oil be manipulated? Sure. Will it work? I doubt it would very last long. Greed rules & there is abundant supply. Technology is making it easier to find & extract, thus it is cheaper to bring to market. Why wait until it goes back down to sell it? IMO, it can also be a good excuse to put a lid on the market for as long as it benefits those who can exploit it. Ö¿Ö