OPEC approves biggest ever output cut

Discussion in 'World Events' started by cosmictraveler, Dec 17, 2008.

  1. cosmictraveler Be kind to yourself always. Valued Senior Member

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    ORAN, Algeria - OPEC on Wednesday agreed to slash 2.2 million barrels from its daily production — its single largest cut ever — while bloc outsiders Russia and Azerbaijan announced their own cutbacks of hundreds of thousands of barrels from the market.

    "I hope we surprised you," OPEC President Chekib Khelil said when asked whether the size of the cut would shock moribund oil markets into an upward trend. "If you're not surprised we need to so something about it."

    Focusing on the shrinking oil market, OPEC noted in its statement that "crude volumes entering the market remain well in excess of actual demand."

    "Moreover, the impact of the grave global economic downturn has led to a destruction of demand, resulting in unprecedented downward pressure being exerted on prices," it said.

    The group said "if unchecked, prices could fall to levels which would place in jeopardy the investments required to guarantee adequate energy supplies in the medium to long term."

    http://www.msnbc.msn.com/id/28274997
     
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  3. Baron Max Registered Senior Member

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    The law of supply and demand at work.

    Baron Max
     
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  5. CheskiChips Banned Banned

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    People are going to die in 3rd world nations for this.
     
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  7. Baron Max Registered Senior Member

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    And mostly nobody cares.*

    Baron Max

    *Oh, sure, people will "claim" to care, but they really don't ....they just say that so others will think nice things about their "compassionate" nature!

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  8. CheskiChips Banned Banned

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    I just think it's a shitty system that every time something goes minutely wrong in the 1st world, only the 3rd world has the fear of death over it.
     
  9. S.A.M. uniquely dreadful Valued Senior Member

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    I agree. Time to tilt the balance, you think?
     
  10. Buffalo Roam Registered Senior Member

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    Actually, thing should be getting better in the 3rd world, food cost, and fuel cost, should be going down, and it isn't the 1st world that is trying to drive the cost of oil back up, except for the Liberals for their Global Warming Agenda, it is the 2nd world, the Arabs, and OPEC, if they succeed in driving the prices back up, who is to blame, and what did they do with all the money they just sucked up? Did they share one red cent with the poor in their countries? or the poor of the 3rd world? No, Not One Red Cent for the Poor.
     
  11. CheskiChips Banned Banned

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  12. Buffalo Roam Registered Senior Member

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    Look at their countries, Grinding Poverty and Midas Wealth, and very little in between, for all the money that the Oil Sheiks and Arabs take in little to none of it reaches the poor of their countries.
     
  13. S.A.M. uniquely dreadful Valued Senior Member

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    Pretty much in the sense that you won't find homeless or grinding poverty except in Palestine. They have a different outlook on life than Asians though. Asians live a minimalist life and only now have started adopting affluent lifestyles. Otherwise ours is a culture that saves money.

    Arabs are different. They love to enjoy their wealth, so its pretty rare to meet one who saves more than he spends. But though they are excellent businessmen, they tend not to pursue wealth to the same extent as the west, they prefer to make everything a social occasion instead.

    Thats why you see more problems in "westernised" countries than you see in the Islamic ones. Egypt will probably face problems over rising food prices, they are more into risk ventures.

    Americans are in a bad way too. One in ten are using food stamps now. And they give trillions to the super rich!
     
  14. pjdude1219 The biscuit has risen Valued Senior Member

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    I always thought that the first world was canada the us western europe and japan.
     
  15. S.A.M. uniquely dreadful Valued Senior Member

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    They are first world in money, but they don't have a social safety net. If they fall, it will be like dominoes.
     
  16. Buffalo Roam Registered Senior Member

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    The poverty line in America is for a Family of 4 is $21,200 a year, now just how many people around the world make $21,200 a year? how many have a income of $12.00 a year like Obama brother?

    The fact is that I can qualify for food stamps, ain't that a Hoot, I make 60+K a year, and because I am disabled, and my Wife is disabled, we can get food assistance, :roflmao:

    That show you how screwed up the Liberals made the system, food stamps to people making 150+ % of the poverty line.

    Only in America.
     
  17. S.A.M. uniquely dreadful Valued Senior Member

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    Yeah but are they happy? Even people making 60,000 a year will be in Macys, buying things all the time because they need to fill the holes in their lives. I've lived with Arabs who made maybe $800 a month, but they are so happy. They don't need food stamps, people will give food if they need it. Its not even charity, its neighborly, to look after each other. So I think the money is less important than the quality of life.
     
  18. Buffalo Roam Registered Senior Member

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    And I was raised in a family that made considerable less than $21,200 a year and was very happy.

    So you lived with Arabs who made maybe $800 a month, but they are so happy, yes, what were they servants to your family?

    Seems that I have read comments like that from the Old Masters of the South.

    I have lived on less than $800 a month, and was very happy.

    Let see, my first job paid $1.98 a hour, that was $316.00 a month before taxes.

    I hand no problems with that and was very happy.
     
  19. S.A.M. uniquely dreadful Valued Senior Member

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    $316 a month must have been a long time ago. I need at least $2000 a month. I could scrape by on a $1000 but it wouldn't cover travel and theatre, so I would be unhappy. I'm spoiled.

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  20. iceaura Valued Senior Member

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    I'm willing to believe that other people are happier on average, but a bit wary of people talking about the "happy people who don't need money". It tends to be used as a justification for inequity and abuse. Rich people say it about the poor in their cities.

    My suspicion is that happiness has little to do with money, beyond enough to live on somehow. Again, that's easier to say if you have money.

    http://www.nationmaster.com/graph/lif_hap_net-lifestyle-happiness-net

    On topic though: this isn't supply and demand. OPEC is a cartel. They are managing the supply, trying to maximize the take without killing the golden egg goose.
     
  21. LogicTech Registered Member

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    Money isn't correlated with higher levels of happiness, but higher levels of happiness is correlated with higher standards of living...
     
  22. Baron Max Registered Senior Member

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    It's exactly supply and demand. The demand for oil has been less in the western world lately, so OPEC cuts the supply in accordance with the demand.

    It's no different to farmers who decide not to grow corn this year because there's a glut of corn on the market. They're trying to match the supply to the demand in order to maximize their profits. Supply and demand.

    Baron Max
     
  23. Michael 歌舞伎 Valued Senior Member

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    Hmmmm maybe this will cause the US economy to faulter even more which will lead to much more investment in energy independance and less oil importation. That sounds great. I`m looking to the day when we can look in the deserts of arabia and see barron abandoned snow fields of a once decadent people lost to the pages of history.
     

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