If they reduce the number of barrels..... They will just increase the size of each one..... This is their well earned reputation.....
ByLoSellHi, Don't waste your time. These guys are not crude traders -- they are members of AIPAC fan club. They don't understand and don't really care that a $25/bbl crude would kill Canada's petroleum industry.
Countries like Russia Venezeula need the cashflow from oil to pay for gov't expenses. they sell their oil at whatever the market price is to get their oil revenues. they aren't 'cheating' by cutting back or increasing production. Saudi's still make money if oil is $20/barrel. they'll sell even at below cost or at cost to generate tax revenues or jobs in the oil sector
True much of our oil does not come the 'bad' places. A bit over simplistic in my view as its a world market. Where the oil physically came from and physically goes is not as important IMHO For me, I can't wait until something replaces oil and the 'bad' buys can go back to riding their camels and will not have the importance to be in our radar as well as the ability to put us in theirs.
If the Saudis shut in 2 million BOPD of their most "marginal" production, figure their direct production costs average well under $4 per barrel. Everything else is mere social economic distribution.
================================ Anoher oil trader said , no way are they going to tell an oil tanker, wanting to fill up . they just reached the quota. Somebody needs to get back that super tanker full of oil, the pirates have; its a shame when the cheaters get cheated
oil needs to be at least $200/barrel for alternative energy to be feasible. at least $80/barrel for oil sands to be feasible. lower price and supply decreases that is economics 101 you can't buy oil futures more than 6 months