Oil prices have risen to about $49 a barrel with the rumor of OPEC cutting supplies by 2 million barrels per day. The leaders in OPEC are trying to combat predictions that oil prices will sink below $30 a barrel in early 2009.
Saudi Arabia said $75 a barrel is a fair price. But what I want to know is shouldn't they have tons of money saved up from when oil was almost $150 a barrel? It seems only fair that prices sink really low for a period.
2 comments:
Oil Prices seems to be very much a demand pull phenomenon, seeing how once the demand is not there any more prices drop dramaticallyy, it'll be interesting to see how much wil the supply side of this effect the price. Because it seems like people have already made long term commitments to decrease gas usage.
I happen to think that it is a pendulum swinging back and forth trying to find it;s equilibrium price. I think that the price of oil will continue to go up and down as we continue to see significant disparities in our economic outlook. I think speculators will have a major role in both control the price and also increasing and decreasing the price due to our economic outlook.
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