Comments on: OPEC’s Worried About the Price of Oil http://allfinancialmatters.com/2006/09/26/opecs-worried-about-the-price-of-oil/ A personal finance blog dedicated to discussing such topics as budgeting, asset allocation, 401K, IRA, cash flow, insurance, financial planning, portfolio management, and other areas in personal finance. Sat, 11 Feb 2012 20:32:19 +0000 hourly 1 http://wordpress.org/?v= By: JLP http://allfinancialmatters.com/2006/09/26/opecs-worried-about-the-price-of-oil/comment-page-1/#comment-28564 JLP Wed, 27 Sep 2006 21:54:17 +0000 http://allthingsfinancialblog.com/2006/09/26/opecs-worried-about-the-price-of-oil/#comment-28564 Sam, Since people were blaming Bush for the high oil and gas prices, will they give him credit for the lower prices? So far democrats are being quiet on this issue. Sam,

Since people were blaming Bush for the high oil and gas prices, will they give him credit for the lower prices? So far democrats are being quiet on this issue.

]]> By: sam http://allfinancialmatters.com/2006/09/26/opecs-worried-about-the-price-of-oil/comment-page-1/#comment-28562 sam Wed, 27 Sep 2006 21:48:52 +0000 http://allthingsfinancialblog.com/2006/09/26/opecs-worried-about-the-price-of-oil/#comment-28562 I blame Exxon and the Bush administration for these oil prices! I blame Exxon and the Bush administration for these oil prices!

]]> By: Anonymous http://allfinancialmatters.com/2006/09/26/opecs-worried-about-the-price-of-oil/comment-page-1/#comment-28531 Anonymous Wed, 27 Sep 2006 15:52:09 +0000 http://allthingsfinancialblog.com/2006/09/26/opecs-worried-about-the-price-of-oil/#comment-28531 Prices are a function of the marketplace. While there are actions that both suppliers and consumers can take that will move them up or down, they cannot be arbitrarily set. Fundamentally, what is meant by saying that prices are set by supply and demand is both incredibly simple and enormously complex. The current price is the price at which the consumers are willing to buy the same amount as the suppliers are willing to sell. The problem for both suppliers and consumers is that the supply and demand curves both move around over time, changing the price and volume at which they meet. If gasoline prices stay high long enough, people buy more fuel efficient cars. Demand at a given price falls. If the price falls below the cost for some suppliers, it isn't worth it for them to pump or ship it. Prices are a function of the marketplace. While there are actions that both suppliers and consumers can take that will move them up or down, they cannot be arbitrarily set.

Fundamentally, what is meant by saying that prices are set by supply and demand is both incredibly simple and enormously complex. The current price is the price at which the consumers are willing to buy the same amount as the suppliers are willing to sell.

The problem for both suppliers and consumers is that the supply and demand curves both move around over time, changing the price and volume at which they meet. If gasoline prices stay high long enough, people buy more fuel efficient cars. Demand at a given price falls. If the price falls below the cost for some suppliers, it isn’t worth it for them to pump or ship it.

]]> By: ciwood http://allfinancialmatters.com/2006/09/26/opecs-worried-about-the-price-of-oil/comment-page-1/#comment-28517 ciwood Wed, 27 Sep 2006 13:44:47 +0000 http://allthingsfinancialblog.com/2006/09/26/opecs-worried-about-the-price-of-oil/#comment-28517 Unfortunately, prices need to stay high! A high oil price is the only way we will wean ourselves away from OPEC! If prices had stayed high in the 70's, we would now be driving hydrogen cars and the Arabs would be killing each other instead of us. Unfortunately, prices need to stay high! A high oil price is the only way we will wean ourselves away from OPEC! If prices had stayed high in the 70′s, we would now be driving hydrogen cars and the Arabs would be killing each other instead of us.

]]> By: Foobarista http://allfinancialmatters.com/2006/09/26/opecs-worried-about-the-price-of-oil/comment-page-1/#comment-28453 Foobarista Tue, 26 Sep 2006 22:04:51 +0000 http://allthingsfinancialblog.com/2006/09/26/opecs-worried-about-the-price-of-oil/#comment-28453 They're having the same problem anyone has when they've adjusted to a higher level of income. It's always easier to increase spending than to decrease it. This is especially true if you're using oil money to buy off important groups in your country and stave off coups or revolutions, as the leaders in Iran and Venezuela are doing. They’re having the same problem anyone has when they’ve adjusted to a higher level of income. It’s always easier to increase spending than to decrease it.

This is especially true if you’re using oil money to buy off important groups in your country and stave off coups or revolutions, as the leaders in Iran and Venezuela are doing.

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