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China Ressesion soon?, petro kill them...
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cherroy
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 May 12 2008, 03:40 PM
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20k VIP Club
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QUOTE(hanif444 @ May 12 2008, 09:16 AM) So basically US are controling the Oil price rather then say by OPEC...most of the time OPEC cant do anything...if tmr US say their inventories more over ,oil price will drop.. If Shortage...it will increase another few more cents...haha Basically, yes. Mainly because at current situation, supply is steady and stagnant (there is no shortage worldwide, just no extra signficantly supply for near term), but demand is fluctuating big time especially from China and futures market speculators, also inflation factor. So the only way to bring down the crude relied on demand side aka US and China, not OPEC. This post has been edited by cherroy: May 12 2008, 03:43 PM |
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cherroy
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May 12 2008, 08:55 PM
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20k VIP Club
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QUOTE(dr2k3 @ May 12 2008, 07:34 PM) erm...i still think if OPEC want the price to come down they can do much easier than those speculator....no matter what, they r still the one producing the oil...all they need to do is increase the production and dump as much supply as possible....but i doubt that will happen its the same as currency...right now ECB is dumping the euro preventing them to go any higher...from 1.6++ euro/usd now bcome 1.54... Oil is not like currency that you can print and dump into the market to suppres the price. -->> USD scenario. There is not much spare capacity at the moment mainly because when oil was around USD10-20, nobody has the financial incentive to find new oil field or built new oil rig to dig more oil. At current moment, a lot of oil field are in max production situation already. It is somehow like tap water, if your house water pipe is 1/2 inch then there is a max amount that pipe can supply you the quantity of water in one day. OPEC suffer the price dip when oil price was USD10-20, so they don't want to overly produce just to suppress the oil price, also who don't want to sell higher price if could and more $$$ in the pocket. Just my opinion.  This post has been edited by cherroy: May 12 2008, 08:55 PM |
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