Opec to keep oil quotas unchanged

[spindrifter]

Oil production group Opec has voted to maintain the current level of crude oil production by the member countries.
The decision, made at a meeting in Caracas, marks a rejection of calls by some members to reduce quotas.

<snip>

While oil supplies have improved, Opec members do not want to be seen pushing up prices which are already near record levels already, analysts said.

Opec's output quota has stayed unchanged since mid-2005 to quell worries about supply shortages prompted by tensions between the US and Iran, the war in Iraq and terrorism in Nigeria among other reasons.

<snip>

http://news.bbc.co.uk/1/hi/business/5039386.stm

So the output quota has remained the same for about a year, and we are bleeding out of our wallets for what reason?

[scarletwoman]

1. "we are bleeding out of our wallets for what reason?" Rhetorical question,

right?

We already know why -- big profits for Exxon, et al.

sw

[spindrifter]

3. Exactly.

They probably figured we would like to pay more at the pump and more at the grocery store so they could plump up executive pay and perks.

[badgerpup]

2. Not to worry!

The chimperor Bush has promised to look into any instances or reports of gouging. :sarcasm:
:rofl:

[eallen]

4. They all are pumping at capacity, or near to it.

For a couple of years now, OPEC has vacillated between (a) claiming they're pumping more oil than is needed, and that only artificial manipulation is keeping the price high, and (b) promising to expand capacity to meet demand. And yet they're pumping full out, except perhaps for the anchor. But the evidence is, Saudi Arabia, too. Under those conditions, talk about adjusting quota is more show than substance.

I fall on the side that current prices are simply the result of demand increasing faster than supply. I don't see that changing in the near future. 'Course, I could be mistaken about that last.

[spindrifter]

5. I think you

are right about that--the demand is from China, especially. And that is not going away. As China builds out its infrastructure more than it currently is, their energy needs will probably be unsustainable unless there is a lot of diversification.