Help! What if OPEC cuts production? I recently was rolling with joy at the prospect of permanently paying less than $3.00 for a gallon of gasoline. I was actually gleeful. I have more money for shopping. I can aimlessly drive around to shopping malls on Saturdays, just like in the good ole days. Now what? What if OPEC cuts production? Would that act automatically raise my gasoline prices? Thanks OPEC! You are a pack of rotters with the heart of the green Grinch!
Should OPEC opt to cut production then quite obviously oil gas prices will start going up again. It will be gradual though so for now we can enjoy the lower gas prices. In a few months, should they decide to cut production [and I hope that they won't] then we'll be back where we previously were. Optimists say they [OPEC] won't cut production. http://www.cnbc.com/id/102209237 I hope they are right.
It seems like a good strategy for them to keep production high and hope that US oil drilling begins to slow down and future projects are put on pause. If the other drilling countries get too powerful, they no longer have the ability to manipulate the price. On top of that, the price of oil has been artificially high due to trading.
It doesn't matter what OPEC does. Gas prices are going to rise slightly in the coming months due to seasonal trends, and nothing is going to stop that. Gas prices probably won't shoot up anytime soon, but a steady rise is inevitable. It's not that big of a deal, though. Fuel prices don't affect people nearly as much as they think they do because we're going to drive when we need to drive. Price per gallon isn't going to stop that.
I'm less interested in oil itself and more-so how this may influence renewables. That said, the oil drop really helped my airline stock today. Should be interesting to see what happens when the american markets open.
The cutting of production and the fluctuation of prices has been a constant in the past years and I think this is something that will happen forever.
They aren´t going to cut production anytime soon. OPEC is going out of its way to say the opposite. If they wanted to raise the price of oil, all they would have to do is start talking about cutting production ( and not actually do it).
The question is, how low will oil prices go??? I see SDRL is now trading for under $10. Seems like a good deal at the moment! But, I know they have quite a bit of debt, so I still am hesitant to pull the trigger.
Couldn't have said it better! They don't need to cut production to drive up the price, all they need to say is "we are considering cutting our production" and oil will shoot up 5 to 10% in an hour or two.
