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2008-12-02 Home Front Economy

Oil plunges below $50 after Opec fails to cut

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Posted by GolfBravoUSMC 2008-12-02 01:50|| || Front Page|| [1 views ] Top

#1 ...I suspect that this is a great deal of sound and fury, signifying nothing. Any production cut at this point would be shooting themselves in the foot, as the world economic situation isn't going to change. On top of that, when it comes to production cuts, OPECs record isn't good. They tend to talk a good fight while cheating left and right. It shows how little these people understand the market and its forces that they seem to believe the speculator-driven price hikes of the last year or so were a perfectly natural event that will happen again just by their wish that it happen.

Mike

Posted by Mike Kozlowski 2008-12-02 06:09|| 2008-12-02 06:09|| Front Page Top

#2 here's hoping a lot of speculators lost their asses

Posted by Frank G">Frank G 2008-12-02 08:26|| 2008-12-02 08:26|| Front Page Top

#3 A lot of these Opeckers are in a cash flow situation. They are going to lose their shirts, because their spending has doomed them in times of low oil prices. They HAVE to sell oil to get cash, and that drives the price down even lower.

Posted by Alaska Paul 2008-12-02 12:59|| 2008-12-02 12:59|| Front Page Top

#4 Yesterday I filled up at $1.67, on the way past the same station today it's 1.61.
Speculators, DIE.

Posted by Redneck Jim 2008-12-02 13:40|| 2008-12-02 13:40|| Front Page Top

#5 The true speculators have made a killing since the same folks who added the last $20-30/bbl on the way up are the ones currently pushing oil down. The crude price will undershoot in the same way it overshot thus providing a nice opportunity for the speculators to exchange their short positions for longs.

Posted by AzCat 2008-12-02 14:50|| 2008-12-02 14:50|| Front Page Top

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