Oil Jumps 3% Thanks to OPEC Scare
September 27th, 2006 | by Brian Carr |The price of crude oil rose nearly $2 today on news that OPEC is seriously looking into reducing oil production in order to offset the rise in world wide oil and gasoline inventory levels.
After nearly falling below $60 again, thanks to reports of another increase in U.S. oil reserves, the price of a barrel of crude oil finished the day up $1.95 at $62.96 thanks to the grumblings out of OPEC, which has previously stated that it will defend $60 per barrel by possibly reducing oil output.
Despite the sharp rise in oil prices, the average price of a gallon of regular gasoline fell to $2.36, the lowest price since March, with many locations around the country seeing prices well below $2.00, according to Gasbuddy.com.
Aside from OPEC, the major determining factor regarding the direction of oil prices will be North America’s winter temperatures. With a mild winter, oil may finally be able to hold below $60 regardless of OPEC’s decision to cut output. However, a cold winter may signal a return to $70 oil.
One Response to “Oil Jumps 3% Thanks to OPEC Scare”
By Independat Voter on Sep 28, 2006 | Reply
It sure seems like Bushs friends were and are trying to get Repubicans elected by manipulating gas and oil prices. I saw this interview the day it aired.(4-25-04) I am astonished that more people were not outraged by the following quotes. Prince Bandar denies oil price fixing in one breath, then admonishes Tim Russert in the next with a boisterous “What, don’t you guys WANT cheap oil?” October 2004 was an important election cycle and we saw low gas prices. October 2006 is an important election cycle, and surprise surprise, oil is dropping like a stone. Wall Street knows it’s coming, the Republicans and the Democrats know it’s coming, and yet somehow the American people remain in the dark. This is the same interview where Prince Bandar admits asking the FBI for permission for direct members of Osamas family to be allowed to fly out of the US just days after 9/11. He also admits that his country held terrorist fund raising telethons AFTER 9/11. Everyone should see this video, yet strangely it is very difficult to find on the internet. (after alot of searching) Here’s a link to the transcript.
http://www.saudi-us-relations.org/newsletter2004/saudi-relations-interest-04-26.html
Tim Russert: What do you think the price of Saudi oil will be in October 2004?
Prince Bandar: I wish I knew, but I can assure you now we’ve been working very diligently to make sure that the prices go down below $28. This is a public position we have taken, and we’ve convinced OPEC to agree with us on that. And, I don’t understand what is so wrong with oil prices going lower. I thought that is good for America, the American economy, the American people. And, it is definitely good for us in my country.
Tim Russert: And may be good for George Bush’s reelection?
Prince Bandar: It may be good for anybody in the Whitehouse and the American people. And, we don’t see the difference.
Hmmmmm, he doesn’t see the difference between cheap oil all the time, and cheap oil when Bush and the Republicans need an election year campaign boost. I will explain. One is a normal economic state, where as the other is election tampering.