Attempt at market manipulation of oil price fails
Bloomberg/Fuel Fix:
There biggest problem is increased US production This is more evidence of how wrong President Obama was when he said that the US could not drill its way to lower prices. He showed his ignorance of US potential as well as the law of supply and demand. He is still blocking production on a significant portion of federally controlled sites. His blocking of the Keystone XL is a gift to the despots in Venezuela whose imports to the US could be eliminated by buying the Canadian oil.
West Texas Intermediate fell Tuesday to the lowest level in more than four years after nations supplying a third of the world’s oil failed to pledge output cuts before this week’s OPEC meeting."Quarterly monitoring" seems like a strange term given that they check the price on a daily basis. What they probably is that they will see if there is an agreement on market manipulation on a quarterly basis.
Venezuela, Saudi Arabia, Mexico and Russia said they plan to start quarterly monitoring of oil prices. Tuesday’s talks in Vienna didn’t result in any joint commitment to reduce supplies, said Igor Sechin, who runs Russian state oil producer OAO Rosneft.
“Even those four countries are not agreeing to any kind of cut, and the last thing the Saudis want is to be the ones doing all the cutting,” said Tariq Zahir, a New York-based commodity fund manager at Tyche Capital Advisors. “You have to get an above 2-million-barrel cut from OPEC to stabilize the market.”
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There biggest problem is increased US production This is more evidence of how wrong President Obama was when he said that the US could not drill its way to lower prices. He showed his ignorance of US potential as well as the law of supply and demand. He is still blocking production on a significant portion of federally controlled sites. His blocking of the Keystone XL is a gift to the despots in Venezuela whose imports to the US could be eliminated by buying the Canadian oil.
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