commodity prices for a product that is produced, traded and consumed on a world wide basis are not controlled by any one entity but are subject to the rules of supply and demand... as well as other factors..
Oil production cut backs announced
- Thread starter Jetronic
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4WD
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A monopoly. Which is the goal of a free market producer.
Nope. Oil may be produced in America but is sold on the world market.
You're giving far too much credit to the colored teams & not looking at the power of oil companies. No One, I repeat, No One is getting in the way of oil companies to pump more oil. We are far too much in ear shot of what the teams say rather than hear straight from the horses mouth... The oil co's. We've been importing a huge chunk of our oil for many years not just recently.
Right, the industry controls supply so they can demand more money...
No one's disputing that. You also can't dispute that crude (and therefore gas) was much less expensive when we were the world's #1 producer...
The oil industry doesn't operate in a free market...
Maybe "need" was the wrong word. When we were #1, OPEC didn't have as much influence on prices as they do now...
They didnt that we know of but that said - they didnt flex on us.
Russian oil was also on the market at large as a competitor to ours and theirs, so there wasnt much flexing going on.
That depends on how you define the market. It is a supply and demand issue. Demand is up due to strong world wide economies. Supply is controlled by OPEC. They have (and control) all the marbles.
Prices will tend to rise until consumption is affected to an unacceptable level. If big oil can make as much, or more, with less supply, why should they produce more? Brutal to consumers? Sure, welcome to the market. Fair? Corrupt? Depends on which side of the deal you are on.
The answer to OPEC's control is the emergence of a viable alternative.
I don’t care gas price has never been a thought when I ran my credit card since graduating engineering college. Don’t even look or care about total. Cannot control that but can control how much money I make.
Bingo.
I know one thing, I don't come to BITOG for financial advise or complex economic news but if I do want to learn anything about the oil market I read this
oilprice.com
Crude Oil Prices Today | OilPrice.com
Crude oil prices & gas price charts. Oil price charts for Brent Crude, WTI & oil futures. Energy news covering oil, petroleum, natural gas and investment advice
oilprice.com
As a rich guy I understand this, at the same time I can recognize the costs of energy in all forms is a burden on many.
Neither You nor I are seeing the true cost of this energy today in one bill, in reality its multiples higher than we pay because of the massive subsidy and its price is still volatile.
We can spend much less and achieve independence in both availability AND price.
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4WD
$50 site donor 2024
Kudos to anyone who makes bank, but not everyone does. And they gotta eat too.
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