Here's why oil prices aren't coming down anytime soon — and why OPEC can't stop the climb

The Organization of the Petroleum Exporting Countries is an intergovernmental organization of 13 countries. Founded on 14 September 1960 in Baghdad by the first five members (Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela), it has, since 1965, been headquartered in Vienna, Austria, although Austria is not an OPEC member state. As of September 2018, the 13 member countries accounted for an estimated 44 percent of global oil production and 81.5 percent of the world's "proven" oil reserves, giving OPEC a major influence on global oil prices that were previously determined by the so-called "Seven Sisters" grouping of multinational oil companies.

The formation of OPEC marked a turning point toward national sovereignty over natural resources, and OPEC decisions have come to play a prominent role in the global oil market and international relations. The effect can be particularly strong when wars or civil disorders lead to extended interruptions in supply. In the 1970s, restrictions in oil production led to a dramatic rise in oil prices and in the revenue and wealth of OPEC, with long-lasting and far-reaching consequences for the global economy. In the 1980s, OPEC began setting production targets for its member nations; generally, when the targets are reduced, oil prices increase. This has occurred most recently from the organization's 2008 and 2016 decisions to trim oversupply.

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i despise you muricans for being so ignorant, stupid and passive

another artificially created crisis for the agenda 2030

The Organization of Petroleum Exporting Countries is an example of an international cartel. The organization was created at a conference in Baghdad, Iraq on September 10th-14th, 1960. The founding members which include Iran, Iraq, Kuwait, Saudi Arabia and Venezuela agreed to create an organization that could bring some degree of stability to the world oil market. OPEC agreed to coordinate energy policies to ensure a fair price for their exported oil and a steady supply to the market.[2] The governments of the OPEC countries agreed to coordinate with petroleum firms (both state owned and private) in order to manipulate the worldwide oil supply and therefore the price of oil.

When firms agree to collude, that is they agree to a certain price and quantity for a good or service, they create a cartel. A cartel is a type of oligopoly.[3] As cartels are formed and operate in secret, it is up to the members of the cartel to keep their agreement in tact. The firms must trust each other not to drop their price to undercut the others or increase their output.[4] This is difficult to ensure as firms may have different production costs and therefore require more of the profit to meet their costs. Because of this, there is less control over the market than there would be under a monopoly structure.[5]


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Not to mention its just plainly much cheaper to sell American fuel products to South American countries than it is to meet the 2022 refinery regulations placed on products used in the U.S.

The atmosphere in South America is different than that hovering over the U.S. and they don't give a flying fuck about greenhouse gases.

they can't.

peak oil is real.

.

sure, don't talk about the call for production to go down.
never
don't do that

they can't.

peak oil is real.

.
[/quote

when the price for oil went to -$35 a barrow they lowered production and never raised it again.

[link to en.wikipedia.org (secure)]


"Hubbert's upper-bound estimate [in 1956], which he regarded as optimistic, accurately predicted that US oil production would peak in 1970"

and it did peak in 1970.

[link to www.eia.gov (secure)]

what happened in 2010 is that we went back to all the
old peanut butter jars that we scrapped out with a fork,
but used a knife to get the remnants we couldn't reach
before. So that was coming to an end no matter what, too.

because there is ZERO competition?

first place the price of oil is speculative, people buy it as an investment a lot do, not to use it in any way. A commodity.

The earth continuously makes oil.

lol.

I heard the same thing in 1979.

liar.

100% unmitigated BS

You can thank dumbass Biden for these ridiculous fuel prices if you voted for him. I remember buying fuel for $1.89 a gallon 1 month before Biden took office.