> > http://www.stratfor.com/home/giu/archive/100801.htm > WJPBR Email News List [EMAIL PROTECTED] > Peace at any cost is a Prelude to War! > > OPEC Unable to Drive Prices Up > October 8, 2001 > > Summary > > Ministers representing the 11-member Organization of Petroleum Exporting > Countries decided Oct. 7 not to cut oil production despite the drop in prices > since the Sept. 11 attacks on the United States. This is tacit > acknowledgement that restoring oil prices is beyond OPEC's current > capability. A production cut of the size necessary to restore the cartel's > $25-per-barrel target price would bankrupt all of the OPEC states. > > Analysis > > OPEC Secretary-General Ali Rodriguez said Oct. 7 that due to the unique > global situation following the U.S.-led strikes on Afghanistan, the cartel > would wait before taking steps to limit oil supplies. Prices, according to > OPEC's measurement, have fallen 24 percent since the Sept. 11 attacks on the > United States while the price of Brent crude continued hovering at around $22 > per barrel Oct. 8. > > For the time being, OPEC's members actually do not have the ability to > restore oil prices to their preferred price of $25 per barrel. The global > recession, robust oil supplies and the refusal of non-OPEC states to cut > production will sabotage any attempt to shore up prices in the next six > months. Such a chain of events will lead to cheap energy, higher energy > security and a quick degradation in the economies of OPEC members. > > All the relevant energy-price indicators are pointing in the same direction: > down. Energy consumption is lower across the board, in part due to the global > recession. For instance, the Oil and Gas Journal estimates that demand for > jet fuel is down 20 percent in the United States and down 10 percent > elsewhere. The aviation industry accounts for 8 percent of global oil > consumption. > > > > > > *COPYRIGHT NOTICE** In accordance with Title 17 U. S. C. Section 107, > any copyrighted work in this message is distributed under fair use > without profit or payment to those who have expressed a prior interest > in receiving the included information for nonprofit research and educational > purposes only.[Ref. http://www.law.cornell.edu/uscode/17/107.shtml ] > > Want to be on our lists? Write at [EMAIL PROTECTED] for a menu of our lists! > > NSP Lista isprobava demokratiju u praksi ==^================================================================ EASY UNSUBSCRIBE click here: http://topica.com/u/?bUrBE8.bVKZIq Or send an email To: [EMAIL PROTECTED] This email was sent to: [email protected] T O P I C A -- Register now to manage your mail! http://www.topica.com/partner/tag02/register ==^================================================================
