OPEC Meeting in Shambles as Iran and Venezuela Push Their Agendas

phantom power

(1000+ posts) Send PM | Profile | Ignore

Wed Jun-08-11 01:06 PM
Original message

OPEC Meeting in Shambles as Iran and Venezuela Push Their Agendas

Saudi Arabia�s more-or-less stable hand guiding OPEC was yanked from the tiller at the oil producers� meeting today in Vienna.

For the first time in two decades, OPEC�s stated mission of �ensuring the stabilization of oil markets,� has been replaced by a politicized agenda and the desire by some states (primarily Iran and Venezuela) to increase revenues now, regardless of long-term consequences. The schism comes at a bad time for the still-fragile (and still-oil-addicted) global economy.

The standoff in Vienna that left oil production levels unchanged translates into higher oil prices � Iran�s and Venezuela�s poke-in-the-eye of the U.S. and Saudi Arabia.

http://blogs.forbes.com/oshadavidson/2011/06/08/opec-meeting-in-shambles-as-iran-and-venezuela-push-their-agendas/

Printer Friendly | Permalink | | Top

FBaggins

(1000+ posts) Send PM | Profile | Ignore

Wed Jun-08-11 01:20 PM
Response to Original message

1. There have always been two (somewhat shifting) factions within OPEC

Those who could produce more than their quota and those who can't even if they want to.

Iran wouldn't mind cutting the quotas because it would boost prices and they don't actually have to cut anything (not being able to produce even what they are allowed)... but the higher prices encourage those with excess capacity to cheat a little and boost their profits.

Tight world supplies have kept this conflict below the surface but the past events could repeat. I believe the Saudis hinted at as much just a couple days ago.

Printer Friendly | Permalink | | Top

madrchsod

(1000+ posts) Send PM | Profile | Ignore

Wed Jun-08-11 01:21 PM
Response to Original message

2. venezuela should be our friend

Printer Friendly | Permalink | | Top

lfairban

(1000+ posts) Send PM | Profile | Ignore

Wed Jun-08-11 11:20 PM
Response to Original message

3. Does this mean . . .

. . . $5/gal. by August?

Printer Friendly | Permalink | | Top

DU AdBot (1000+ posts)

Fri May 03rd 2024, 12:00 PM
Response to Original message

Advertisements [?]

Top

Powered by DCForum+ Version 1.1 Copyright 1997-2002 DCScripts.com
Software has been extensively modified by the DU administrators

Important Notices: By participating on this discussion board, visitors agree to abide by the rules outlined on our Rules page. Messages posted on the Democratic Underground Discussion Forums are the opinions of the individuals who post them, and do not necessarily represent the opinions of Democratic Underground, LLC.