Get ready for your gas/oil prices to go up...

arsnalj23

arsnalj23

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Jan 13, 2003
[h1]OPEC approves biggest ever output cut[/h1] [h2]Group makes deep cut to counter slumping oil prices

[/h2]
[h2]msnbc.com news services[/h2]
[h2]updated 2 hours, 1 minute ago [/h2]

ORAN, Algeria - OPEC says it is cutting 2.2 million barrels a day from its output - the largest ever at one time - to stem crude prices that have plummeted over 70 percent from summer highs of nearly $150.

An OPEC statement said Wednesday its latest announcements means it is taking 4.2 million barrels a day off the market compared to September levels. The 4.2 million figure includes more than 500,000 barrels of overproduction OPEC said in September it would eliminate and a formal cut of 1.5 million barrels a day that it agreed on last month.

That amounts to a new reduction of 2.2 million barrels announced Wednesday.



In practice, "it's 2.2" said OPEC President Chakib Khelil.

Members among the 13-nation organization were officially producing a daily 29.045 million barrels in September.

Saudi oil minister Ali Naimi had first mentioned a 2 million figure in Oran on Tuesday, the eve of the oil ministers' decision making meeting.

Oil producers fear a drawn-out lull in prices could hurt investment and lay the groundwork for another sharp price spike when the world's economy rebounds.

OPEC gave ministers ammunition to justify cuts in its latest monthly market report, released Tuesday. The bloc predicted demand for its crude oil will have fallen by 700,000 barrels per day this year, and will drop by at least twice that amount in 2009 as the worsening global economy "is expected to have a strong impact on oil demand."

Ahead of the decision, other OPEC ministers also expressed sentiment for a large cut to shock the market and put a floor under prices.

Shokri Ghanem, Libya's delegate to OPEC, said that "we should make a substantial cut" and that 2 million barrels was "a very good number."



Venezuela's energy minister, Rafael Ramirez, used similar language: "What is important is that there should be a consensus to cut production. A significant cut," he said. Ramirez added that Venezuela, a traditional price hawk, favors a cut of between 1 million to 2 million barrels per day.

Iranian Petroleum Minister Gholamhossein Nozari did not give a number, but said that Iran would support a reduction of 2 million barrels per day.

Still, while eager to push prices higher, OPEC must weigh production cuts against the risk of driving the economies of its top customers deeper into recession.

http://www.msnbc.msn.com/id/28274997http://www.msnbc.msn.com/id/28274997

Enjoy these prices while you still can...
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Was only a matter of time.. they can't stand only making a few billion dollars profit a year
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when oil companies make less money, they cut back on high-priced exploratoration for new oil sources thus cutting the overall supply of the world. as lowerprices drive demand up, the supply will become smaller and driving the price through the roof....
 
Still, while eager to push prices higher, OPEC must weigh production cuts against the risk of driving the economies of its top customers deeper into recession.


with that said their will be either minimal increase to the prices or none at all.
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^^^ yea thats what I was thinking too. Considering the state of the world right now, they'll cut production but not enough that it will really matter muchat first.
 
i literally got buckets of buckers of gas.. cuz its so cheap.. u guys should do the same.. just to save some money
 
I think a good point is around 1.80-1.90 right now. At that point its high enough to where people still perceive it to be "really cheap" because itsunder $2.00
 
Originally Posted by LAzianBoi

i literally got buckets of buckers of gas.. cuz its so cheap.. u guys should do the same.. just to save some money
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gas evaporates.
 
OPEC is a joke. The faster the developed world (especially the US) gets off our dependency of foreign oil the better.
 
them dudes is a-holes.....oil prices were never supposed to be that niigh in the first place and those greedy bastards got greedy......
 
Originally Posted by LAzianBoi

i literally got buckets of buckers of gas.. cuz its so cheap.. u guys should do the same.. just to save some money
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laugh.gif
It's really not worth all that trouble
 
Originally Posted by Untitled

them dudes is a-holes.....oil prices were never supposed to be that niigh in the first place and those greedy bastards got greedy......
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True, but you gotta admit the prices were relative to demand and inflation. If we weren't buying it, it wouldn't cost so much. Also, we gotta rememberthat oil is not a renewable resource, so the more we use it up, the more the value will rise.
 
Originally Posted by soop3rbaby

guess i aint gonna be gettin that truck after all
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Exactly my thoughts... I been pondering the idea of gettin' a smaller SUV in the next week or two.

Decisions, decisions...
 
It was good while it lasted. When gas hit low 2 a gallon here, I was driving around like I did back in '03-'04. I was laughing at folks who were goingout to buy SUV's and stuff, like the price of gas would be this low forever.
 
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