Tough Shit. Apparently, with oil prices sinking, OPEC decided to slash production by about a million and a half barrels per day. It's an effort to "shore up" oil crude prices and, basically, make gas more expensive again. What a bunch of crooks.
Problem for them is, it did NOT work!
VIENNA (AFP) – OPEC slashed its oil output by 1.5 million barrels a day from November 1 at an emergency meeting on Friday, but failed to shore up the oil price which plunged in a gathering storm of recession.Here's the kicker:
Analysts had expected the Organization of Petroleum Exporting Countries to cut its daily output by at least one million barrels per day as a global economic slowdown amid a worsening financial crisis slashes demand for energy.
Global stock markets plunged on Friday, with London losing more than nine percent as it struck a five-year low on news that Britain's economy shrank in the third quarter, placing it perilously close to a recession.
OPEC, which produces 40 percent of world crude, announced a cut to production in a bid to support crude prices which "have witnessed a dramatic collapse -- unprecedented in speed and magnitude," according to an official statement.
Yet after the cartel agreed to slash output to 27.3 million barrels per day, the price of Brent North Sea crude sank close to 61 dollars, the lowest point for 17 months.
OPEC, which produces 40 percent of world crude, announced a cut to production in a bid to support crude prices which "have witnessed a dramatic collapse -- unprecedented in speed and magnitude," according to an official statement.Unprecedented?! As opposed to RISE that has taken place over the last three years, right? You know, the one that has contributed greatly to CluterF#%K to the Poorhouse we're currently experiencing.
And finally, OPEC stated:
In the meantime the cartel said it "cannot be expected to bear alone the burden of restoring equilibrium (between oil supply and demand)," calling on "non-OPEC producers/exporters to contribute to efforts to restore prices to reasonable levels and eliminate harmful and unnecessary fluctuations."Um. I'm sorry. "Harmful and unnecessary fluctuations?!" Harmful to whom? Frankly, I'm MUCH happier paying $2.65 per gallon of gas than I was paying $4.15 per gallon of gas. To be honest, it's probably actually HELPING our economy as it's freeing up a bit more of the common person's money to be spent on other necessities, like food, clothing, heating and the like.
Here's to praying OPEC REALLY pays the price and the cost of oil falls even further. Maybe we'll be back to where we should be, at around $1.75 per gallon.
Wouldn't THAT be nice?
And here's a good one:
British Prime Minister Gordon Brown, fearing that a cut would send oil prices spiking, recently said that any reduction would be "scandalous" at a time when major world economies, including the United States and eurozone, are on the brink of recession.Sorry, Mr. Prime Minister. Do you HONESTLY think the members of OPEC give a shit about what happens to the world economy? Grow and learn. They couldn't possibly care less as long as their bottomless coffers keep filling up with everyone else's money.
OPEC, here's the lesson: When you gouge, you ultimately end up paying the price, because as much as people need it, they won't pay so much that you'll send them all to the poorhouse.