maximax

Should We Listen to Boone Pickens on Oil?

opec lost its ability to keep the oil price within a target range, actually it only had this ability for a short while earlier this decade. however opec can still act to define a loose floor to the price as long as spare capacity is so low and nearly all in opec hands. look at the national budgets of the opec countries, if they are at risk going into the red due to a low oil price then (at the very latest) opec members will decrease quotas.