Quote:
Originally Posted by Zef
OPEC can only cut production so much before it effects their bottom line. When this occurs they will be forced to again increase production in order to generate required economic revenues. The simple fact is that they continue to cut production, but demand and speculation are decreased therefore the price continues to drop. People seem to think that the US gets massive quantities from OPEC. In fact, US largest external suppliers are Canada and Mexico. Neither are members of OPEC. So we hold you by the ******.....Lollllll
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Yeah, but we pay for your oil just because we are being polite. If Canada ever decided to cut us off, we'd just take it.
Canada and the US have a strange relationship. Almost symbiotic.
Besides, the topic is gasoline, not oil. The two have an effect on each other but are not necessarily directly related.
People are starting to get over the shell shock of last summer. They are starting to realize that gas is really cheap now. The conservation movement that was driven by $4.50 gallon gas is starting to wain. Refiners are cutting production out of shear necessity.
I see $2 a gallon in So cal by new years and $2.25 by February which is a reasonable price right now based solely on production cost.
BTW I paid $1.63 yesterday.