gordontravels

On Oil Prices and Barron's Bullishness

Yes the cost/price/value/suppl... of oil goes up and down and we all know we can depend on it whether a matter of a day's change, a solid up down move over a few months or those long waiting to see what they think they know. I'll just post a theory:

It is late 2010 and Russia has joined OPEC. The much anticipated meeting to see how much the cartel will cut is today. analysts have already decided another 2 1/2 million barrels are going down and OPEC has been rather glued together since late 2008 so all the anticipation is built in.

Oh... here comes Mr. Petro Mouth to the microphones... let's listen in.

"Gentlemen and ladies", he pauses for effect... "The members of OPEC have reached an acceptable conclusion based on the best interests of our citizens and what we believe is fair to the World Markets; those in the markets that benefit from our product."

A hushed silence. "It is the decision of OPEC now looking at the price per barrel of petroleum at $38.76 that we must do something about the supply and our losses for the last 3 years." The crowd is dead silent.

"Therefore, we are in complete agreement, each and every member that production output will be raised by 2 million barrels per day starting January 15th and that increase in output will come from our most needy members." A murmer flows over the crowd.

"We have also decided that the price for a barrel of oil will now be controlled by our members within and in accordance with the Cartel's wishes of not only the majority but all members here today in complete agreement." Another hush falls on those assembled.

"Therefore, as of January 15th, the price of a barrel of oil coming out from any member nation of OPEC will be priced at $78.00 a barrel."

And the rush for the doors ensues.