Really O.P.E.C.

OPEC, The Organization of Petroleum Exporting Countries, which controls about 40 percent of the world’s crude oil production, decided on Friday October 24th that they are going to decrease their oil production targets by 1.5 million barrels a day to “bolster” falling oil prices. Really as if squeezing our wallets dry over the summer months with record high prices at the pump wasn’t enough. OPEC also encouraged other producing countries to do the same, the reason being, we need to stabilize and protect our gas prices from unhealthy fluctuations. To me it just seems like a sophisticated way to say we were getting comfortable with the profits we were making from 4 dollars plus per gallon over the summer which has caused our appetite for greed to grow even larger. They say the market is off balance and that by decreasing production the will bring it back to its equilibrium and prices will take care of themselves. No the equilibrium is where it is at because of the market, what they are doing is creating a price ceiling that reduces the quantity available causing the price to increase, no question about it. So my concluding statement is really, really OPEC with the Global economy in the pits you’re gonna cause the biggest dependent variable in the cost of transportation to rise once again, thanks.

To read more feel free to check out these articles

“Crude Oil Is Poised for Biggest Monthly Drop as Demand Declines”

“Oil Falls Below $65 on US Contraction”

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~ by casst18 on October 31, 2008.