Friday, October 24, 2008

OPEC screws itself

OPEC voted to cut production by 1.5 million barrels of oil per day in an effort to boost prices and all they got for their effort was another drop in the market-driven price of oil.
Oil fell sharply and traded below $65 a barrel Friday amid weakening global demand for crude -- despite a decision by the OPEC cartel to cut production quotas by 1.5 million barrels a day from next month.
Bwahahaha!! They'll produce less and get less for it. Forget light sweet about a bit of light sweet Schadenfreude?

It's worth adding that this sets up a possible death spiral for the market price of oil. OPEC nations are well-known to be greedy fuckers. Most member states have been known to cheat on production quotas in order to boost their own oil revenues. Which, of course, puts more oil on the market. Which, of course, drives the market price down further.

No comments: