In a way this is pathetic: OPEC says unable to calm runaway oil prices.
OPEC's president today said that "potentially dangerous" high crude prices were beyond the cartel's control as leading members defied pressure to raise their output to help ease the burden of near $US100 oil.
See, its not that they CAN'T increase production its that they WONT.
"These prices are potentially dangerous," Mohammad al-Hamli, who is also the oil minister of the third largest OPEC producer United Arab Emirates (UAE), told a symposium held as part of a rare OPEC summit.
"OPEC is doing all it can for prices to be suitable" for consumers and producers, Hamli said. "But it is clear that factors are beyond OPEC's control."
Hmm, sounds like he is about to fess up. Lets listen in.
Producers have blamed a dramatic decline in the US dollar, speculation by investment funds and geopolitical factors for record prices of more than $US90 a barrel.
Ah, right, its all those factors, the ones that are mostly hot air and have no real relationship to the stuff in the geology.
"Why should we increase production?" said Algerian Energy Minister Chakib Khelil, who claimed a production hike would have no influence on prices.
Here is a guy who is prepared to be seen as a bastard, a grinch, deliberately withholding the drug, rather than all hat and no cattle.
In a report issued from OPEC headquarters in Vienna, the cartel also lowered its estimate for demand this year, a move likely to make those assembled in the Saudi capital less inclined to raise output.
And if the oil prices stay where they are, economic demand SHOULD fall and with it oil demand right? So its a pretty safe bet you would think. Unless Peak Oil is real. Back to the fly on the wall.
Benchmark oil prices fell [See, we told you they would] on world markets, with New York's main contract down 55 cents to $US93.57 per barrel.
The catalyst for the drop in oil prices was data showing a surprising increase in US crude inventories in the latest week.
Whoa there. Hang on, What was the price again? $US93.57?
What was the date of this story Earl? Ah. November 16. Hah, that is SO November 16, right now its November 23, and things look totally different.
Now I don't believe that the world economy has turned around in a week. The US $ continues to devalue for sure, but demand has not picked up, all the inventory hasn't been burned; so what's going on?
Here's an idea. That hot, stinking breath on your neck is not your girlfriend after a meal of garlic and durian, its the tiger in your tank, and its about to bite you on the ass.
But right now, all we get from anyone with access to the media is "Tiger? No tigers here". I think I'll invest in bandages, seat cushions and antiseptic, the market for bitten butts is about to explode.
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