OPEC stated that they will cut production, they want prices to be at $80 a barrel next year.

40 and change is what it closed at today I believe.

Only cost me 14.75 to fill up last night. I was tickled to death over that.

Oil prices sink on Saudi talk of production cut

http://finance.yahoo.com/news/Oil-prices-sink-on-Saudi-talk-apf-13844736.html

^ I find it humorous that OPEC has no control at this point over the price of oil. Even cutting production has no impact. In fact, it's even had the reverse effect.

I blame the stupid oil companies for the recession. Had they not jacked up the prices and recorded record profits, then the cost of goods wouldn't have skyrocketed due to transportation to the stores, people would have traveled more because it wouldn't have taken your first born to fill up and people would have then pumped more money into retail items and car sales would have increased because people would have been putting more miles on cars because they would have been driving more! I hope the Devil has a toasty warm seat saved for OPEC and anyone else who gauged this country into submission for there record profits. Any American involved in this should be charged with treason!

I blame the stupid oil companies for the recession. Had they not jacked up the prices and recorded record profits, then the cost of goods wouldn't have skyrocketed due to transportation to the stores, people would have traveled more because it wouldn't have taken your first born to fill up and people would have then pumped more money into retail items and car sales would have increased because people would have been putting more miles on cars because they would have been driving more! I hope the Devil has a toasty warm seat saved for OPEC and anyone else who gauged this country into submission for there record profits. Any American involved in this should be charged with treason!

 

I hope you are joking. First of all, recessions happen- they can't be prevented. Secondly, why would the oil companies want a recession? Thirdly, if all they cared about was their own greed, then why would the prices be lower now?

 

Let's say that you sell milk. Let's also say that cows are hard to come across in America, but you want to try to breed more cows. However, the government tells you that you may not try to breed any more cows for a few reasons. You notice two things- some foreigners are charging more and more for you to buy their milk (to sell to the American people) and neither of the incoming potential Presidential candidates have shown a willingness to allow for more milk. What would you do?

Does anyone know what it costs an oil company to remove 1 barrell of oil from the ground? I am talking from start to finish.

I hope you are joking. First of all, recessions happen- they can't be prevented. Secondly, why would the oil companies want a recession? Thirdly, if all they cared about was their own greed, then why would the prices be lower now?

 

Let's say that you sell milk. Let's also say that cows are hard to come across in America, but you want to try to breed more cows. However, the government tells you that you may not try to breed any more cows for a few reasons. You notice two things- some foreigners are charging more and more for you to buy their milk (to sell to the American people) and neither of the incoming potential Presidential candidates have shown a willingness to allow for more milk. What would you do?

 

No I'm not joking at all. You have your opinions, I have mine, nuff said!

I hope you are joking. First of all, recessions happen- they can't be prevented. Secondly, why would the oil companies want a recession? Thirdly, if all they cared about was their own greed, then why would the prices be lower now?

 

Let's say that you sell milk. Let's also say that cows are hard to come across in America, but you want to try to breed more cows. However, the government tells you that you may not try to breed any more cows for a few reasons. You notice two things- some foreigners are charging more and more for you to buy their milk (to sell to the American people) and neither of the incoming potential Presidential candidates have shown a willingness to allow for more milk. What would you do?

 

Why do you feel this way? I believe the Fed/Treasury/Congress/White House frequently take actions to help avoid a recession. Sometimes they are successful, sometimes they are not. I guess proving they are successful is somewhat tricky, since if the recession never happens it's tough to prove that it would have were it not for government intervention. But I think most economists would say that the government has had some success in helping avoid an isolated recession here and there.

I doubt oil companies "intentions" were to put the country into a recession, its just a side of effect of the greedy little maggots unquenchable thirst for everyone's last penny...

Why do you feel this way? I believe the Fed/Treasury/Congress/White House frequently take actions to help avoid a recession. Sometimes they are successful, sometimes they are not. I guess proving they are successful is somewhat tricky, since if the recession never happens it's tough to prove that it would have were it not for government intervention. But I think most economists would say that the government has had some success in helping avoid an isolated recession here and there.

I think it would take nearly prophetic knowledge of the business cycle to prevent a recession. When the Fed messes with interest rates, it only changes the degree to which a recession or expansion occur.

 

Let me think/research it more and get back to you.

No I'm not joking at all. You have your opinions, I have mine, nuff said!

 

I doubt oil companies "intentions" were to put the country into a recession, its just a side of effect of the greedy little maggots unquenchable thirst for everyone's last penny...

One thing about opinions is that they are not facts. Therefore, our opinions can be changed through discussion. That is what is great out opinions and this board in general. If your opinion is based on fact, then you can try to sway me to your thinking. Otherwise, it is just based on what you want to believe.

 

First of all, I said that if oil companies really had an "unquenchable thirst for everyone's last penny" then why are prices so low right now? Has it been quenched?

 

Secondly, if you were put in a position where it seemed that things were only going to get worse (my pathetic cow example), then why would you not try to make money?

Prices are low because of simple supply and demand. Everyone is tapped out by the financial beatdown they put on the American public to the point that people just quit driving.

Economics tell us that markets go in cycles. The problem is no one knows how long these cycles are going to be until they happen. It's impossible to predict, and even more impossible to prevent.

 

If it were really the oil companies fault, and they were to blame for everything wrong in the world as some would have us believe, why have prices been falling so dramatically? Regardless of what people think, deflation, such as what's happening to oil prices recently, is not good for the economy. Is it as bad as inflation? Probably not, but it definitely isn't a good thing.