The Daily Habit: Business

OPEC wants oil to reach $70 a barrel 4:20 pm

OPEC Wants $70 per Barrel.  So What? They’ll Get $50 and Like it- When the world is in the midst of the worst financial crisis since the 1930s, many countries will be forced to tighten the belt and ride the storm like everyone else.  In China the demand for cheaply made toys and clothes has ceased to nearly a dead stand still.  Nobody is buying steel from India so lots of mills are standing idle. In America, the auto industry is about bust, but that’s because the union worker makes more than the president.   Let’s call a dead horse a dead horse and if a dead horse isn’t breathing then it can’t make any money at the track.  So, if everyone around the globe is cutting back and adjusting to financial failure, why the hell do those pricks at OPEC think they can jack up the price of oil to fit their greedy little needs?

Those selfish dictators at OPEC wantsto see oil prices rising to more than $70  a barrel, the oil cartel’s secretary general Abdalla El-Badri said Sunday.  “The price of 50 dollars is not enough to cover investment costs for the future,” El-Badri told reporters in Algiers. “The price which allows reasonable and acceptable revenues is more than 70 dollars a barrel,” he added.  “If we don’t get our $70 per barrell we will only produce enough for those who can afford to buy it.”  El-Badri was speaking after talks with Energy Minister Chakib Khelil ahead of the next meeting of the Organization of Petroleum Exporting Countries in Vienna on May 28 (http://news.yahoo.com/s/afp/20090426/ts_afp/oilpriceopec).

On April 15, OPEC lowered its forecast for demand for crude oil in 2009 because the drop in consumption caused by the worldwide recession and nobody is buying their prodicut.  It now says production will drop by 1.6 percent, or 1.37 million barrels a day.  In its April monthly bulletin, the cartel revised down its estimate for world crude demand this year and predicted that a “devastating contraction” in consumption would keep prices under pressure in the months ahead.  So, OPEC thinks they can just jack up the price of oil to $70 per barrel because they’re not making a $billion every day?  So What? That’s too friggin bad.  The demand for crude is down because that idiot George Bush is out of office, and his stupid oil war is what brought us to our knees in the first place.  Sorry Sheik Ali Baba.  Supply and demand doesn’t work that way.  You can charge $70 per barrell all you want.  If nobody’s buying crude, you’ll get $50 per barrel and like it.  Take that and smoke it in your hookah.

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~ by the115 on 04/26/2009.

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