OPEC has announced not only that it is planning rather drastic production cuts, but also that it expects Russia to help. One more cause for us to start snickering to ourselves in the office, drawing concerned gazes from our colleagues and visitors.
Oil at $75 a barrel is “satisfying” to producers and consumers, Khelil said. Prices below $70 may cut investment in production, risking a renewed supply crisis, he said, adding that the scope of production cuts will decide how long it takes to remove surplus inventories from the market.
Seeing Big Macs at $9.50 is probably “satisfying to producers and consumers” too, I suppose.
OPEC Favors Cut to Trim Stocks, Expects Russian Help [Bloomberg]
http://www.reuters.com/article/mergersNews/idUSN1550407020081215?feedType=RSS&feedName=mergersNews&rpc=22&sp=true
shot through the heart, and you’re to blame
I suggest using Madoff Math, it makes everything work for everyone….
EP – ah, dont you need the price of oil high enough to promote exploration, production and transporation of the stuff as well as investments in alternatives? Of course you do. And thats why its “satisfying” to both producers and consumers. Sure, in the short-term, if the price is low consumers will be satisfied while producers will be unhappy so they wont explore, produce or transport at required levels. But in the long term, consumers would be unhappy because they’d see another huge spike as a result of this lack of investment by the producers. Hate to state the obvious, but the Big Mac comment seemed a little naive which I know you aren’t.
As a consumer, I’m happy to pay a little more for gas (at $75 oil) to avoid paying a lot more in the future and see economically viable alternatives developed.
Related News: OPEC announced today that their cartel was intact and monkies were flying out of my ass. Film at eleven.