Oil Slips Despite Talk of More OPEC Cuts

[highwayman]

Good to see oil still dropping in price...



http://www.washingtonpost.com/wp-dyn/content/article/2006/11/06/AR2006110600138_pf.html

VIENNA, Austria -- Oil prices slipped Monday but were off earlier lows after OPEC President Edmund Daukoru said the oil cartel may need to cut production further this year to deal with an oversupply in the market.

In Nigeria, a government official said armed protesters overran and shut down an oil facility run by Italian oil company Agip, the latest violence to hit Africa's biggest crude producer.

Light, sweet crude for December delivery dropped 42 cents to $58.72 a barrel in electronic trading on the New York Mercantile Exchange by midday in Europe, after earlier trading as low as $58.50. December Brent crude on London's ICE Futures exchange fell 33 cents to $58.82 a barrel.

Daukoru described the current price of oil as "low." Regarding OPEC's decision last month to cut production effective Nov. 1, he said the effects of the reduced output have yet to be seen, but would be soon.

 

[rrfield]

the conspiracy theorists say oil prices will spike after the election. just like "they" say it's no coincidence saddam was sentenced to hanging two days before the election.

 

[2minkey]

yeah unfortunately long term oil will continue to go up in price.

it would be really nice to get a real energy strategy in this country... nah, that would require thinkin' ahead.

 

[chcr]

yeah unfortunately long term oil will continue to go up in price.

it would be really nice to get a real energy strategy in this country... nah, that would require thinkin' ahead.

I'm afraid you're right. People will start thinking seriously about an alternative to oil about a week after they figure out they can't get it anymore. The price, however, like all things capitalistic is dependent on supply and demand. It will probably continue to rise, but there are scenarios under which the demand could drop, however unlikely. If that were to happen the price would continue to drop.