Wednesday, June 03, 2009

Different Than Bush?


Gasoline has hit $2.75 per gallon in my neck of the woods. This brief report tells us that OPEC has no intent of backing down from keeping current production levels relatively low.


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Wed Jun 03 2009

Morning Perspective

Powered by Minyanville: OPEC Not Budging

OPEC's Secretary General Abdullah al-Badri said yesterday the price of crude oil could spike to $80-90 a barrel by early next year. But even if prices were to reach that level, the cartel won't be expanding production until an over-supply has been absorbed. In a story by Reuters, al-Badri said last week that he expected to see crude around $70-75 a barrel by the end of 2009, and acknowledged that at current prices there is some speculation but nowhere near the levels when the commodity spiked to a record $147 last July. But continued speculation as well as a falling US dollar could help push prices near triple digits by the beginning of 2010, al-Badri said. He also added that until oil inventories in industrialized countries fall from a current 62 days to 52 days worth of future demand, the cartel won't be making any moves.

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So how does this differ from the administration under former Presidnet Bush? I thought that all those cronies who benefited from high gasoline prices were out of office now. It couldn't be that we have been fed a line, could it?

2 comments:

Tsofah said...

ChuckL: I'm not sure which line we've been fed, but we HAVE been fed quite a few.

Especially when it comes to oil prices.

ChuckL said...

Yep, a lot of lines out there.

To what do you attribute the ups and downs of oil & gasoline prices?