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Another one bites the dust...


southsider2k5

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That whole conspiracy about republicians somehow exerting their control over speculation trades and forcing gas/oil prices to plummet is pretty much ready to be flushed down the toilet with the rest of the crap. It turns out there is a conspiracy to control prices, but it is OPEC, conspiring to keep them high. It wasn't too long ago that they wanted to keep oil in the $22-28 per barrel range, now they are pissed prices went under $60 a barrel, and are cutting output because of that. Don't forget to send a thank you card to your local emir.

 

http://www.ft.com/cms/s/49296ee0-56f6-11db...00779e2340.html

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QUOTE(southsider2k5 @ Oct 9, 2006 -> 09:18 AM)
That whole conspiracy about republicians somehow exerting their control over speculation trades and forcing gas/oil prices to plummet is pretty much ready to be flushed down the toilet with the rest of the crap. It turns out there is a conspiracy to control prices, but it is OPEC, conspiring to keep them high. It wasn't too long ago that they wanted to keep oil in the $22-28 per barrel range, now they are pissed prices went under $60 a barrel, and are cutting output because of that. Don't forget to send a thank you card to your local emir.

 

http://www.ft.com/cms/s/49296ee0-56f6-11db...00779e2340.html

I wouldn't even call OPEC's actions a conspiracy. They are by definition a cartel. They don't have to conspire - they just act as a group when it benefits them.

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THere are several industries like this. There is a limited supply, the earth isn't making much more oil. Why work overtime, keep prices low, etc.? Once it runs out the industry is dead.

 

The onlything that will push oil companies to cut prices longterm and work hard to suck oil from the ground is ifa new battery to power our toys came along. As soon as there is a legitimate alternative, prices will fall as they try and liquidate their remaining inventory.

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