2006-07-22 19:18:49 · 11 answers · asked by Anonymous in Politics & Government ➔ Other - Politics & Government
They control the price by controlling the supply.
2006-07-22 19:23:41 · answer #1 · answered by Jolly1 5 · 1⤊ 0⤋
OPEC doesn't control the price of oil. They control the price for their oil, just as any seller sets a price. OPEC only has 30% of the worlds oil.
The oil price is manipulated with the world market buying it any price they can get it for. They claim that the price is governed by supply and demand. But our oil companies make money as a % of what they pay for the oil. This makes them buy when the price is high to make more money.
The utility companies have a similar system. It's based on the cost to make the power. So the more they spend to make the power the more they can charge and the more they make as a %.
Both systems have been engineered to F the public. Just like our politicians F us. Remember if you can't dazzle them with brilliance, baffle them with BS! They're working it to the max!
It's the fine art of the Flim Flam Man: lie, cheat, steal, backstab, corkscrew, and dirty dealing!
2006-07-23 04:18:26 · answer #2 · answered by Anonymous · 0⤊ 0⤋
When OPEC set the price of oil,that is the rate for all thier members(eleven)The other oil producers generally follow on.The volatility in todays market is caused by the oil companies buying on the market.to meet demand What exxon,shell,bp etc pay for thier oil is anyones guess, as they are major producers in thier own rightThese oil companies make billions at the bowserfrom you and me and millions like us.OPEC has a right to grab as much as they can for thier oil,it's a precious commodity the world needs.When OPEC sees the obscene profits of the oil companies they try to get on the gravy train
2006-07-22 21:01:02 · answer #3 · answered by Anonymous · 0⤊ 0⤋
To be straightforward, the White residing house does have a diploma of variety over what factors could be used. The President can launch federal oil reserves. yet interior the case of the present spike in expenses, it extremely is a concern it extremely is genuinely the fault of the oil manufacturers. a hearth at a refinery in San Francisco drove spot gas expenses interior the path of the roof. Now if the oil industry might desire to construct cutting-area oil refineries and retrofit their older ones at present, the fees might come down. however the recent refineries might require huge help of the Congress with regulations that would get advantages the oil companies. So, interior the top, the White residing house has some potential. yet no longer the type required to finally sparkling up the priority we are plagued by.
2016-12-14 12:12:54 · answer #4 · answered by Anonymous · 0⤊ 0⤋
when they want to jackup the prices they cut down the production
when production is less and demand is more - price of crude goes up
when ppl know there is shortage of crude - nations try to hoard and grab maximum they can grab when the prices are low - which again pushes prices up
and then there comes a point when nations think crude prices are beyong reach and they stop buying / hoarding crude and prices start falling - when prices start falling - OPEC incomes goes down - and to keep up the income they pump out more crude and the price again falls and keeps falling till the hoarded stocks are depleted and space is there for storing more crude
2006-07-22 19:27:46 · answer #5 · answered by charmer 3 · 0⤊ 0⤋
they act in concert as a monopoly, controlling production levels and exportation....hence prices to those who depend on opec for fossil fuel in the form of oil.
jesse's answer is example of the totally uninformed spouting off on subject about which he knows nothing.....what is a bbl of oil, jesse?
2006-07-22 19:46:45 · answer #6 · answered by Slewpy D 2 · 0⤊ 0⤋
OPEC is a group of many ARAB oil companies i belive there is 3 or 4 but i dunno xactly....but anyways they have a sort of "agreement" but not really because its technically illegal but heres how it goes......if one of da companies raisees thier prices all of them do and so forth....if one drops the price the rest follow suit....this is done without inside agreements the firms more or less just follow the lead of one company..... that is how they control the prices....its all economics...if u have further questions hit me up...
2006-07-22 19:25:05 · answer #7 · answered by jesse_95953 1 · 0⤊ 0⤋
It's on their land, and they're usually the ones doing the drilling. Exxon, Shell and other's are the refineries that turn the oil into gasoline and other products.
2006-07-22 19:22:55 · answer #8 · answered by nursesr4evr 7 · 0⤊ 0⤋
by determining how much each nation pumps out the ground.
the less oil, the higher the price.
2006-07-22 19:25:09 · answer #9 · answered by Mac Momma 5 · 0⤊ 0⤋
They have meeting and set production levels.
2006-07-22 19:22:58 · answer #10 · answered by C B 6 · 0⤊ 0⤋