Oil Prices and OPEC

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It really amazes me the preconcieived notions people have...I just shake my head in wonderment...

OPEC raised oil prices back in the 1970's because they got tired of being screwed...they were being paid in dollars which was pegged to the price of Gold at $35 an oz...when on the world market Gold was trading at $110 an oz.... That means all the dollars they were being paid AND HOLDING were losing value....this is how the USA subsidized the war in Vietnam....Remember when De Gaulle demanded payment in Gold for all the $$$$ he was holding (1967).

The Arrrabs also knew back then that their oil was going to run out someday, and that they were holding sooo many $$$$ that they had to do something with them..so they bought what 25% of Krups and invested in RE and US companies...Apple was one in the 90's at $15 a share...

Now someone made the brilliant observation that Hedge Funds and Speculators were keeping the price of oil high...I recall that I said something about that a couple of months back....the price projection for oil is in the mid $30 a barrel range.... however for gasoline the USA hasn't built a new refinery in what 20 years..it's all those EPA regs....The reason for the speculation in oil and this really takes brain power to figure...is the fact that the world situation especiallly in the oil producing regions is well in turmoil....

[IROC]

....and this is why 10 quarts of Mobil 1 cost me over $60 yesterday? :>)

Mike

[MikeCT]