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Originally Posted by Rochard
Don't give me any bullshit about "world markets". Why is oil the only resource who's price is decided by "world demand"? Do we sell coal, natural gas, and timber by "worldwide supply and demand"? No, of course not. What the fuck does oil from Canada and sold in the US have to do with OPEC?
The top three oil producers - in order - are... Russia, Saudi Arabia, and in third the United States. So why does OPEC decide the worldwide price of oil? Canada is the largest importer of oil to the US - do you think Canada wants to sell it's oil to China, or the US? Clearly it's going to be cheaper for them to sell to the US because it's costly for them to ship oil half way around the world.
OPEC can bring us to our knees instantly - they've done it before. In 1973 they did an oil embargo because of US support for Israel during the the Yom Kippur war. You don't think they can do it again?
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Well the demand for oil and use of it throughout the world is growing while it is shrinking in the States. That alone gives us less bargaining power, if another Country is willing to buy more and pays more, it's business we have to fight for, and that's more reasons to speculate on future costs.
Then just look at how we buy/sell it, we speculate on the value of our own supply based on the demands within our own country and around the world. If the supply slips in the States or in another Country, and demand holds or grows, the costs go up. That happens in natural business, then add in speculation and a few other reasons (one prob being opec) and we have the huge explosion in costs today.