Venezuela and Iran Support OPEC Output Cut

[Mr.O]

Venezuela and Iran, dominant members of Organization of Petroleum Exporting Countries (OPEC), have called for reduction in the organization's production in order to support prices.

Speaking after meeting with visiting Iranian President Mahmoud Ahmadinejad, Venezuelan President Hugo Chavez said on Saturday that both countries agreed to support production cuts in the OPEC cartel to control crude prices.

The object is to keep oil prices from decreasing.

http://www.allheadlinenews.com/articles/7006134614

Sounds like Ahmadinejad needs money to me!

 

[Mr.O]

What do all of you think will be the actual outcome if Chavez & Ahmadinejad are successful in persuading OPEC?

 

[humanfly009]

as much as I HATE paying $1.00 or more a liter, I'd have to say higher fuel and oil prices may be the only way for us to learn to be less dependant on petroleum.

 

[Smother]

Cheap oil is gone.....get use to it...oil is going up again.....

 

[rollerboy]

Cheap oil is gone.....get use to it...oil is going up again.....

Oil prices are off over 30% from their peak of last year. I recall some genius saying the exact same thing back then.

$78.40 per barrel on July 13, 2006

$52.99 on Jan 12, 2007

http://www.wtrg.com/daily/crudeoilprice.html
http://futures.tradingcharts.com/intraday/CLG7

Oil prices may go up, they may go down. If you have some kind of psychic power which allows you to correctly predict the future, I suggest you ban yourself from Perb and go about reaping untold billions from this ability.

 

[Smother]

If production cut's do happen......it doesn't take a genius to figure out that the price will escalate. How much nobody knows but it will go up. And I don't recall in my last post a target price i mentioned.
What about $78. It goes the other way around. Way before oil hit $ 78 and it was in the 50.s....people thought these anaylists were out of this world to say it would even hit $70 !! Well it did!! You definetly can't say it would go up again!!!
Don't forget.....Bush is still in charge. OIl is manupulated and they will bring it up as high as they want...get use to it!!
By a cheaper car if you don't like it. I own oil stocks and I love it!
As long as oil stay's above $50 ...these companies are generating major cash flow.

 

[rollerboy]

If production cut's do happen......it doesn't take a genius to figure out that the price will escalate. How much nobody knows but it will go up. And I don't recall in my last post a target price i mentioned.
What about $78. It goes the other way around. Way before oil hit $ 78 and it was in the 50.s....people thought these anaylists were out of this world to say it would even hit $70 !! Well it did!! You definetly can't say it would go up again!!!
Don't forget.....Bush is still in charge. OIl is manupulated and they will bring it up as high as they want...get use to it!!
By a cheaper car if you don't it. I own oil stocks and I love it!
As long as oil stay's above $50 ...these companies are generating major cash flow.

I'm gonna (not) go out on a limb here and say that the odds of oil going up versus down are about 50-50.

 

[Smother]

I don't care what the price of oil does. As i said....as long as it's above 50 bucks...the PE's will be justified. These companies are dirt cheap in terms of cash flow and EPS.

 

[rollerboy]

I don't care what the price of oil does. As i said....as long as it's above 50 bucks...the PE's will be justified. These companies are dirt cheap in terms of cash flow and EPS.

It's pretty close to 50 right now. The house could sweep a lot of sucker bets off the table right now by driving prices below $40. Not enough fear, way too much greed.

 

[Smother]

that's fine....stocks have already priced that in. If you notice alot of these Canadian oil stocks are creating an awesome support levels within they're prices...I've got cash and I'm buying on any big pull back. I don't worry about day to day action....i buy on weakness and go long......I've made huge $$$ like this. And I've been way overweight in the oil patch of the past 4 - 5 yrs now.

 

[Smother]

and another thing...if oil goes to the low 40.s....it won't stay there long!! Opec wants it in the 50's......and that's where it'll stay......believe me.....as an investor...i don't want oil to go above 60 bucks!!

 

[rollerboy]

and another thing...if oil goes to the low 40.s....it won't stay there long!! Opec wants it in the 50's......and that's where it'll stay......believe me.....as an investor...i don't want oil to go above 60 bucks!!

I'm skeptical of OPEC's ability to control the price of oil with any degree of reliability. Oil was pretty much nailed to the floor at $20 a barrel for two decades. On an inflation adjusted basis, it declined significantly in price from the highs set during the OPEC Oil Embargoes of the 70's.

In 1998, during the "Asian Crisis," oil prices plummeted to a low of $11.91 per barrel. Financial meltdown in Asia (and North America) due to speculative excess remains a potential hazard to demand.

http://inflationdata.com/inflation/Inflation_Rate/Historical_Oil_Prices_Table.asp

 

[Smother]

Back in those days though...global demand wasn't as high as it is now either. China and India weren't an issue back then and they have half of the world's Population. The world is advancing in many ways that use Oil.
OPEC plays poker alot with the markets.
I'm just saying that they can manipluate the price if they want. Plus..most OIL companies and analysis say that cheap oil is depleting and new oil wells are harder to find.....that's what they say anyway...
Also...I always thought the term Inflation was a joke anyway! I mean the market and Economic term of inflation is the rise in cost ..EXCLUDING FOOD AND ENERGY!! What a joke that is...right there the numbers aren't real...they are ignoring the 2 most important and used commodities...LOL..Everything is going up but they say...there is no inflation.....ya right....whatever.

anyway....commodities that are in demand seem to have it's joy ride here and there....Gold had i the eighties ....copper and zinc had it....I guess OIL has to have it now ..hey??!!
But I'm just going for the ride for now....oil will decline more as BUSH gets closer to the end of his Presidential role. I think anyway..

But it's nice to debate and hear your comments ROLLERBOY!!
That's what makes a Market eh!! Other peoples opinions..

 

[Smother]

I agree man.....That's why I keep saying that OIL is manipulated and you won't see cheap prices anymore. Analysts have kept saying that. They didn't say that oil wouldn't plunge....unless your a oil analyst or a real estate anaylist saying Vancouver isn't in a bubble ( ya right...of course they're gonna say that...wait until the olympics are over then we'll see).. But most market people do agree that cheap oil is gone and I really do believe that...
remember guys....there was always a 20 - 25 dollar terrorism premium in the price of oil...so take it from there. The market goes on emotion and it goes to extreme's on both the bulls and bears side.

 

[Sonny]

and with oil at $53.00 a barrel the lowest it's been in something like 2 years, gas stations here in the good old lower mainland, continue to price gouge the comsumers with prices over a $1.00 a litre

Gasoline in Lower Mainland at over a buck (say, 97 cents with the 3 1/2 cent "discount") and as low as 80 cents in Toronto. That was at the beginning of December while on business in Ontario. The gap has been pretty much the same for quite a while.

Venezuela and Iran, dominant members of (OPEC)....

As for dominant members of OPEC, I would consider Saudi Arabia to be the head cheese with tagalongs UAE and Kuwait added to the Saudi clout. Some of the smaller players, like Indonesia, add variability due to their stronger need for cash and hence less than enthusiastic support for volume cuts.

 

[JustAGuy]

Last week I read that automobile sales within China increased something like 53% in the past year. And still only a tiny fraction of the population owns their own vehicle. As more and more Chinese are able to purchase them, the demand from that part of the world for oil will keep pushing the price up and up and up.

One of the best investments in the world right now, in my opinion, would be a Chinese automobile manufacturer that is producing them for domestic consumption (assuming such a company is publicly traded).

 

[Mr.O]

They said it...

Gasoline in Lower Mainland at over a buck (say, 97 cents with the 3 1/2 cent "discount") and as low as 80 cents in Toronto. That was at the beginning of December while on business in Ontario. The gap has been pretty much the same for quite a while.




As for dominant members of OPEC, I would consider Saudi Arabia to be the head cheese with tagalongs UAE and Kuwait added to the Saudi clout. Some of the smaller players, like Indonesia, add variability due to their stronger need for cash and hence less than enthusiastic support for volume cuts.

According to the news article both are considered "dominant members" what they use as qualifier to make such claim I am not sure, but I would dare say it is thier political strengths they bring to bear on the Organization.