Opec So Selfish:

Discussion in 'Energy Futures' started by bapunagar, Oct 13, 2006.

  1. Oil prices rose in the US, the action taken by the OPEC members is finally working. They are slowly achieving what they really wanted from the beginning.OPEC is thinking of itself now, it is not concerned about the millions of people who are using there output. OPEC wasn’t taking any action at the time of rising prices since June because of the only thing; they were making profits out of it. And they are cutting the production of millions of barrels only because they are facing losses.

    Oil prices are from near a nine-month low yesterday after an Energy Department report showed U.S. fuel consumption gained 3.5 percent last week. Yesterday, the prices rose 27 cents, or 0.5 %, to close at $57.86 a barrel, itis first gain in three days. Futures touched $57.22, the lowest since Dec. 19,

    Such slides in prices prompted the Organization of Petroleum Exporting Countries to seek a voluntary 1 million-barrel-a-day output cut from its members. OPEC, which produces about 40 % of the world's oil, pumped about 29.7 million barrels a day last month.

    At the end some investors are worried about the investments they are making now when the prices are at $60 an barrel, but they forgot that it is better than the investment made when the prices were at $70 a barrel.