Originally Posted by
kudzu
How does OPEC keep their prices "artificially high"? Last time I looked the OPEC price basket was $70.96.. or just a little cheaper than Brent of Texas sweet.
Look at their production. This is how they manipulate prices. In January, they slowed production to prop up the $50 a bbl price. We're seeing the effect of that now. Can you imagine the glut if we weren't exporting now? And if Texas sweet is $72 and OPEC's is $70, and you're buying millions of barrels of oil, where are you going to buy? Our domestic producers do the same, after a fashion. Remember the oil boom in the Dakotas a few years back? They approach a glut, they start shutting down the wells. Economics.
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