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(Forbes)   Record U.S. production makes $70 oil price target seem odd, unless someone knows something we don't   ( forbes.com) divider line
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1729 clicks; posted to Business » on 02 Feb 2018 at 10:50 PM (24 weeks ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



24 Comments     (+0 »)
 
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2018-02-02 09:32:52 PM  
what the fark did I just read?
 
2018-02-02 10:18:16 PM  

cretinbob: what the fark did I just read?


Basically oil producers, on a global scale, are colluding to get the price back up to some degree.  That or a few coincidences are happening with the same impact.
 
2018-02-02 11:30:14 PM  

cretinbob: what the fark did I just read?


You read something? All I got was a blank screen. Oh wait, it's a Forbes link. Never mind.
 
2018-02-02 11:44:07 PM  

davidphogan: cretinbob: what the fark did I just read?

Basically oil producers, on a global scale, are colluding to get the price back up to some degree.  That or a few coincidences are happening with the same impact.


Good.  Oil prices should be higher.  It helps to drive our transition to energy sources that use less fuel.

/Yes, I'm a hybrid driver :P
 
kab
2018-02-02 11:47:56 PM  

kyleaugustus: davidphogan: cretinbob: what the fark did I just read?

Basically oil producers, on a global scale, are colluding to get the price back up to some degree.  That or a few coincidences are happening with the same impact.

Good.  Oil prices should be higher.  It helps to drive our transition to energy sources that use less fuel.

/Yes, I'm a hybrid driver :P


And gosh darn it, everyone else needs to think just like you.
 
2018-02-02 11:49:52 PM  

davidphogan: cretinbob: what the fark did I just read?

Basically oil producers, on a global scale, are colluding to get the price back up to some degree.  That or a few coincidences are happening with the same impact.


It doesn't have to be collusion. It's an economic judgment. If I continue to produce like it's going to be illegal, I won't make as much money as leaving most of it in the ground and selling less at a higher price. But if I only produce enough to cover the bills, I might get more for it if my fellow producers hear the same idea.
 
2018-02-02 11:53:36 PM  

wildcardjack: davidphogan: cretinbob: what the fark did I just read?

Basically oil producers, on a global scale, are colluding to get the price back up to some degree.  That or a few coincidences are happening with the same impact.

It doesn't have to be collusion. It's an economic judgment. If I continue to produce like it's going to be illegal, I won't make as much money as leaving most of it in the ground and selling less at a higher price. But if I only produce enough to cover the bills, I might get more for it if my fellow producers hear the same idea.


yah, no. it's collusion. greed. sheer farking greed.
 
2018-02-03 12:07:23 AM  
Putin needs to get PAID!
 
2018-02-03 12:30:59 AM  
PunkTiger

That is a true statement.
 
2018-02-03 12:32:17 AM  
I'm gonna thread shiat 5x for every Frobes link I see. Book it, done.
 
2018-02-03 01:23:07 AM  
Politics influence the price of oil and many other things more than that econ 101 demand/supply curve. That is why rich folks donate to politicians.
 
2018-02-03 03:05:47 AM  

wildcardjack: davidphogan: cretinbob: what the fark did I just read?

Basically oil producers, on a global scale, are colluding to get the price back up to some degree.  That or a few coincidences are happening with the same impact.

It doesn't have to be collusion. It's an economic judgment. If I continue to produce like it's going to be illegal, I won't make as much money as leaving most of it in the ground and selling less at a higher price. But if I only produce enough to cover the bills, I might get more for it if my fellow producers hear the same idea.


If you can produce at $3-4 a barrel, then you just pick which way to turn the spigot.  If your costs are higher, only make sense to produce when the going price is greater than cost.

Anyways, saw a shiat ton of new F-150s in West Texas on my drive across country late last year.  Price must be working out there.
 
2018-02-03 08:25:45 AM  
What happened to the law of supply and demand? As supply increases, shouldn't the price decline?  Has there been a rise in demand that exceeds the rise in supply?  Seems like there's something fishy going on.
 
2018-02-03 08:54:03 AM  
oil price goes up

bitcoin goes down

can't explain that
 
2018-02-03 09:47:46 AM  
Morans in the US talk about petroleum produced in the US as 'our oil'.   Our?  Really?  Has the US petroleum industry been nationalized by the invisible hand of Obama?  If you want to get technical about it, the oil produced in the US belongs to the petroleum companies, and since oil is a global commodity, it is priced accordingly.

img.fark.netView Full Size
 
2018-02-03 10:02:58 AM  
At least it means ISIS get to sell that oil again and start paying and arming for stuff again... so I guess there is that?
 
2018-02-03 11:42:25 AM  

runwiz: What happened to the law of supply and demand? As supply increases, shouldn't the price decline?  Has there been a rise in demand that exceeds the rise in supply?  Seems like there's something fishy going on.


demand continues to grow, opec continues to stall its production, speculations being speculative, investors in shale oil wary of possible drop, so investment aren't bubbling
 
2018-02-03 03:24:57 PM  

Heraclitus: Putin needs to get PAID!


and the saudis....but mostly putin.
 
2018-02-03 06:55:47 PM  

Grahor: runwiz: What happened to the law of supply and demand? As supply increases, shouldn't the price decline?  Has there been a rise in demand that exceeds the rise in supply?  Seems like there's something fishy going on.

demand continues to grow, opec continues to stall its production, speculations being speculative, investors in shale oil wary of possible drop, so investment aren't bubbling


Seriously no one has mentioned the Saudi's are going to IPO their state run oil company? ARMACO will be the biggest stock ever. The prince will do anything ( and I mean ANYTHING) to get the price of oil to shoot up before the IPO. Just look what he has done in his whole "curuption" round up to his own country men.

That and throw in the initial rise in inflation we are seeing now (just the start of a long period of rising inflation) and you get higher oil prices.

The saudis have their thumbs on the majority of oil producing nations. They might even be bribing them with a piece of the IPO action.
 
2018-02-03 08:30:26 PM  

sinko swimo: wildcardjack: davidphogan: cretinbob: what the fark did I just read?

Basically oil producers, on a global scale, are colluding to get the price back up to some degree.  That or a few coincidences are happening with the same impact.

It doesn't have to be collusion. It's an economic judgment. If I continue to produce like it's going to be illegal, I won't make as much money as leaving most of it in the ground and selling less at a higher price. But if I only produce enough to cover the bills, I might get more for it if my fellow producers hear the same idea.

yah, no. it's collusion. greed. sheer farking greed.


Of course it's collusion. OPEC is a prototypical cartel.  They control the price by determining how much they will export.
 
2018-02-03 10:26:21 PM  

runwiz: What happened to the law of supply and demand? As supply increases, shouldn't the price decline?  Has there been a rise in demand that exceeds the rise in supply?  Seems like there's something fishy going on.


Few things.  Oil is relatively inelastic as far as price, for one.  Two, our supply might increase but other countries could drop their exports to maintain a higher prices.

As long as they're making enough to operate, it's in their interest to reduce output and maximize profit margin off what they sell. Oil won't expire, and it won't replenish...
 
2018-02-04 09:53:52 AM  

davidphogan: cretinbob: what the fark did I just read?

Basically oil producers, on a global scale, are colluding to get the price back up to some degree.  That or a few coincidences are happening with the same impact.


dont forget its a free market. giggle
 
2018-02-04 09:54:59 AM  

sinko swimo: wildcardjack: davidphogan: cretinbob: what the fark did I just read?

Basically oil producers, on a global scale, are colluding to get the price back up to some degree.  That or a few coincidences are happening with the same impact.

It doesn't have to be collusion. It's an economic judgment. If I continue to produce like it's going to be illegal, I won't make as much money as leaving most of it in the ground and selling less at a higher price. But if I only produce enough to cover the bills, I might get more for it if my fellow producers hear the same idea.

yah, no. it's collusion. greed. sheer farking greed.


why do u hate crony capitalism?
 
2018-02-04 09:56:55 AM  

ar393: Heraclitus: Putin needs to get PAID!

and the saudis....but mostly putin.


saudis r our so called allies. so spankings for you.
 
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