[Spoolin335]

With OPEC planning to announce the biggest cut in production ever tomorrow, what do you think will happen to Crude Oil prices? stay the same for a while?, drop more?, or finally start to go up?

Ive done some research and in the past when they announce cuts in production the price of crude has continued to drop.

I am not sure if we will see a significant gains but im going to guess and say the price will level off. Once they use up more oil from Western Canada oil sands and supply drops, we might see an increase.

I have lots of money into Suncor, so im hoping Oil goes up eventually...

What do you guys think?

[chuck92103]

I say it will go down to $30 per barrel. The current price has already factored in the proposed cuts.

OPEC only controls 40% of the world's oil supply. When they cut, other countries produce more because everyone is trying to make money now.

If oil prices go up, demand will go down and the net effect is OPEC does not make any more money.

I do believe we need gas prices to stay in the $2-$3 per gallon range or we will lose support for alternative energy and domestic drilling programs and people will go back to Hummers.

[darkphantom]

Originally Posted by chuck92103

I say it will go down to $30 per barrel. The current price has already factored in the proposed cuts.

OPEC only controls 40% of the world's oil supply. When they cut, other countries produce more because everyone is trying to make money now.

If oil prices go up, demand will go down and the net effect is OPEC does not make any more money.

I do believe we need gas prices to stay in the $2-$3 per gallon range or we will lose support for alternative energy and domestic drilling programs and people will go back to Hummers.

This is very correct. If energy costs in the oil sector continue to drop, we will see decreased government spending into R&D of alternative energy sources, and as a result, we will be back to square A. Although, the congress has held down the U.S. automakers' by telling them they're are fault for all the failures in the domestic market, I think this will have some effect on the production of vehicles in the future - regardless of the current price of oil. Since we are in a recession, we will eventually get back and when we do, the price of oil will too...

[pmeloche]

They cut production because demand has dropped significantly. There is no point for them to stock barrels of oil. They will ramp up production when demand will increase if it ever does.

[nnnnnnnnnnnnnnnnnnnnnn]

demand is supposed to drop by 400,000 barrels a day in 2009. They are trying to BS everyone again. This time the investors and speculators aren't buying into it. It could and probably will go up to around $60/barrel, but it will collapse again. It'll probably settle between $20-$30 barrel and stay there for a long time.

[nnnnnnnnnnnnnnnnnnnnnn]

Originally Posted by chuck92103

I do believe we need gas prices to stay in the $2-$3 per gallon range or we will lose support for alternative energy and domestic drilling programs and people will go back to Hummers.

Hummer isn't coming back anytime soon. I think they will be the first to be cut by GM.

[nnnnnnnnnnnnnnnnnnnnnn]

Originally Posted by damadama

^+1 whats the point of owning a hummer anyway... its offroad capable but how many people do you think actually use it? i think gas needs to go up to 5-6 a gallon so drastic changes can be made, we will be better off for it in the long run.

i wonder what driving an electric sports car would be like... I bet in 10-15 years we will have a market.

SUVs are pointless for 99% of the US population. Just look at Europe. You will hardly ever see an SUV in Europe.

Oil and gas will stay around for a long time. Alternative modes of transportation are just that, alternatives. Not replacements.

[chuck92103]

Well OPEC cut 2.2 million barrels of oil production and oil is still plummeting. Seems the investors think people will buy less oil if the price goes up.

Oil is currently trading at $40.74, down $2.86.

[Icedog_16]

To some extent, I think that the ~$150/bbl price is what set the ball in motion for the global slowdown. Sooner or later something had to give. Now OPEC is dealing with the repercussions of their actions. One question I must ask is: If $75/bbl is a 'fair' price according to them, why didn't they ramp up production to bring prices down to the 'fair' price when they were so high and they were making money hand over fist? I guess their idea of fair and mine differ substantially.

[ArmyBimmerDude]

Originally Posted by ferrari355fi

SUVs are pointless for 99% of the US population. Just look at Europe. You will hardly ever see an SUV in Europe.

Oil and gas will stay around for a long time. Alternative modes of transportation are just that, alternatives. Not replacements.

Europeans drive station wagons instead of SUV's and pickups. One thing I do know is they will overpay soldiers who are stationed there for SUV's and pickups.

[darkphantom]

well look at that...oil prices dropped after the cut...

[jaiman]

1) Oil is going lower, $25 wouldn't surprise me.
2) OPEC members always overproduce.
3) Oil sands aren't really viable at $40 per barrel.
4) Eventually the global economy will recover and oil along with it.

[chuck92103]

Most American's know how and where to cut back.

When gas went from $2 per gallon to $5, my monthly fuel bill did not change. I simply drove less or car pooled, or drove the smaller car more.

If they want to go back to $4-$5 gas, they will sell much less.

Also, a tremendous amout of oil is used to produce products in factories such as automobiles. Since the production has been cut in half, along with airlines flights, shipping, etc. they have created a mess and greed is the culprit.

The correct price for gas is somewhre between $1-$2 per gallon. I don't buy the fact it is not profitable at $30 per barrel. I think this is just what they want us to believe.

[darkphantom]

^obviously.....demand controls price...good observation though

[MJC///M3]

oil prices dropped today...

and they will continue to do so.....

OPEC can suck wind for a change.

[RonJon]

Originally Posted by chuck92103

Well OPEC cut 2.2 million barrels of oil production and oil is still plummeting. Seems the investors think people will buy less oil if the price goes up.

Oil is currently trading at $40.74, down $2.86.

Well.. OPEC didn't cut 2.2 million barrels. They agreed to cut production by that number. Some members will "cheat" and lie because they think that its better for them to sell more barrels at a cheaper price, rather then selling less barrels for higher price.

One of the most respected analyst of the energy sector is predicting that it will bottom out in the $25 range. He predicted that a barrel would hit the $150 mark, which was pretty much bang on.

[pmeloche]

Originally Posted by ferrari355fi

SUVs are pointless for 99% of the US population. Just look at Europe. You will hardly ever see an SUV in Europe.

Oil and gas will stay around for a long time. Alternative modes of transportation are just that, alternatives. Not replacements.

I do not know what part of Europe you are refering but I spend a fair amount of time in Northern Italy, Switzerland, and the Alps region in general and SUVs are quite popular. For outdoor activities, SUVs are quite practical.

[nnnnnnnnnnnnnnnnnnnnnn]

Originally Posted by pmeloche

I do not know what part of Europe you are refering but I spend a fair amount of time in Northern Italy, Switzerland, and the Alps region in general and SUVs are quite popular. For outdoor activities, SUVs are quite practical.

I prefer to stay in places that don't require a st.bernard to bring me weekly supplies.