OPEC Price Woes

Isn't it interesting when an oil minister in the Middle East is complaining that crude oil prices are too low?

...members of the Organization of Petroleum Exporting Countries are working to control prices to "inch them up."

OPEC plans to meet March 15 in Vienna, and some of its leaders have said a production cut is likely.

As one commenter to the story wrote:

When storage tanks at tank farms are full to the brim and supertankers sit at anchor with full holds and no place to offload, there's no way anyone will be able to dictate that crude prices should be higher. Oil isn't selling at ~$40 per barrel. It isn't going to sell at $50 either. Even when OPEC cut back production earlier this year the crude prices went down. (link added - ed)

Unless demand picks up, prices aren't going to go anywhere. If the worldwide recession gets worse, then the prices will likely fall, even with further production cuts.

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