PPRuNe Forums - View Single Post - Oil prices drop to a 7-month LOW...
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Old 24th Jun 2012, 01:21
  #16 (permalink)  
onetrack
 
Join Date: Nov 2004
Location: Perth - Western Australia
Age: 71
Posts: 1,809
Don't go buying that gas-guzzler you always dreamed of owning, just yet - and don't throw all your spare cash into airline shares just yet, either. Share-price Forecasters are well known to have cloudy crystal balls.

OPEC have a particularly nasty record of screwing the taps down on the oil wells, and reducing production levels by several % points, on regular occasions, when they have become mightily displeased with the current level of oil pricing.

The reduction in production nearly always has the effect of hiking oil prices - to levels that provide squealing sounds from oil-based-product users, as their cojones are once again clamped - and this is a satisfying sound to the oil producers, and always results in a satisfying return to substantial profit levels, for aforesaid oil producers.
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