As members of the Organization of Petroleum Exporting Countries meet in Vienna Wednesday to discuss oil output policy, leader Saudi Arabia is expected to try hard to push oil prices below US$100.
The kingdom has talked about raising its output sharply starting this month by more than 500,000 barrels a day, regardless of what the rest of OPEC decides. It is also expected to favour a formal output increase after members informally exceeded their targets.
Saudi Arabia isn’t just being nice to consumers. It wants to soften prices to protect its market — the higher the prices, the more consumers shift away from oil, either by cutting energy use or moving to other energy sources. It’s also worried that high oil prices are standing in the way of a robust global recovery.
OPEC is smart. What Obama is doing to our economy is not, DIRECTLY, OPEC's problem. It has been determined by economists that $4.00 per gallon for gas in the US is the tipping point or what the US market will bare. Above $4.00 per gallon and the US economy slowly shuts down. It is no coincidenc¬e gas is $3.75-$4.2¬5 per gallon.
ReplyDeleteEurope's socialist policies have finally run out of "other people's money" and are implementi¬ng "austerity¬" measures. After watching the Reagan sparked economic boom for 25 years (1982-2007¬) Democrasts FINALLY got control of BOTH houses of COngress AND the WHite HOuse for the first time in a generation¬.
After waiting 25 years Obama and Democrats quickly set about coping Europe's socialist polices JUST AS EUROPE'S 40 year experiment with OTHER PEOPLE MONEY FAILED!!!
Obama's economic policies have TRASHED our economy and OPEC does not want to flood the market with oil as the WORLDS ECONOMY slows down.