Free Market My Jim Royle

[allenlondon]

We use less oil, so price falls. So far, so free market.

And then what do the Saudis and Russiabs do?

Cut oil production = less oil = higher prices.

And yet no-one says Boo to this blatant market-rigging!

I wish I did hear the sound of drums...

[mushroom25]

the situation isn't as clear cut as you seem to have painted it, Allen. whilst waning demand will affect the price, the recent catastrophic (to the industry at least) price drops have had more to do with a price war between Saudi and Russia. Neither has agreed any cut but the market recognises a need for stability, and cutting production would be one way of achieving that.
https://edition.cnn.com/2020/04/02/business/oil-prices-trump-russia-saudi-arabia/index.html

[royfromaus]

BOO to this blatant market-rigging!


Sorted.

[allenlondon]

Well, it’s a point of view, but I find simplifying most capitalist arguments is best and usually leads to who’s copping the profits.

[allenlondon]

Err.. glad you’re on my side, royfrom.

[royfromaus]

They've cut oil production because there is no room to store it.
I've just sold oil off the back of this 25% rise.

Wish me luck.

[fiction-factory]

Surely the Russians, Arabs, Scots, and any other oil producers would be foolish not to have cut oil production. Demand must have plummeted. They can't afford to store all the stuff they can't sell. I heard they were paying people to take it away!
I've not followed oil prices but petrol has fallen a lot in recent weeks- Morrisons had it for exactly £1 a litre the other day. Are oil prices any higher than 2 months ago as a result of this 'rigging'?

[Hopkirk]

The price of crude oil was plummeting before the lockdown. It's not caused by low demand.

[jno]

the price of a litre at Tesco Wembley Extra is 102.9 at the moment, which is down 10p or more in the last couple of weeks. Asda in Forty Lane may be cheaper.

[allenlondon]

Lummy jno, we must be neighbours. Church Lane Kingsbury?

[royfromaus]

Woo-hoo look at the price of oil, little allen.

[royfromaus]

That's me out, al.
Could go either way from here.

[dannyk13]

On the news last night was a piece about one American oil producer selling oil at minus $40 a barrel.In other words he was paying people $40 to take a barrel of oil.This was due to not having room to store the oil.