Since OPEC fixes floor prices for crude oils they sell us,why don't we fix prices for the goods we sell them?

Question

We sell or provide them foods, cars, weapons, construction machinery, places to party without prudishness, booze& entertainment outside their strict islamic fiefdoms and traditions, all the luxuries of modern society, and a military defense that keeps the sheiks on top to boot --everything but the crude oils which they already have in abundance and love to export under short term contracts. And we do this all gladly even though we and our GOVERNMENT and our OIL COMPANIES know that they, the OPEC Cartel of state-owned National Oil Companies, are fixing the prices of our petroleum products which we refine their crude oils purchased at non-free market determined FIXED PRICES.

file TWH 08032006

KevinW, I can assure you that you have an idea that has been planted in your head--listen carefully to what I am going to say. Back In 1974, Commercial Oil Companies were kicked out of the countries where they were operating and their assets were taken over by the national governments that form the cartel known as OPEC. Since then the floor price for, and the export volumes of, exported crude oils has been fixed at meetings of this Cartel. Now with this said, try to understand that since then the commercial oil companies have willingly collaborated with OPEC so they could continue in business operating the aging refining systems they had built to process those crude oils they got out of the ground. Also Since 1974, many commercial oil companies searched and found oil in other places. The added volumes kept pace with growing demand for petroleum fuels due to global economic development in places like China,India,& Eastern Europe spurred by the end of Communism in the old USSR.

The volume of crude oils exported by OPEC has remained essentially level at 30 million barrels per day since 1974. But world demand has grown from 65 to 85 million barrels per day.

All was well until two years ago when supplies started falling short of the demand from the likes of China and India which have to import their oil needs complicated by the advent of speculators who began to jump into the oil market sensing ala Enron trading opportunities. Enron,Dynergy, and all the rest of our major oil companies were and are just overjoyed since they all knew and know that nothing was ever done by the governments or by anyone else to improve energy efficiencies and reduce our reliance on imported crude oils.

The oil companies and OPEC are for profit businesses and they profit from our addiction to petroleum, and they have no intention to behave any differently in the future as long as they reap the kind of profits they are now making.

note 08042006 Only 3 responses meanwhile latest report was that: Crude-oil futures edged down toward $75 a barrel after Tropical Storm Chris was downgraded to a depression, but nervousness about the conflict in the Middle East kept declines in check.

Answer 1

Nice point. knowing they were chowing down on $50/pound chicken would make paying $3/gallon for gas more palatable.

Answer 2

we could, but the fact is they don't fix the price, so much as it is bid for.......ad China needs more oil now, so the price goes up....and with the wars, the fact that oil may turn up to be a precious commodity, the bidding goes higher.....plus, it takes all 8 countries....I think it is 8.....to settle on the minimum price.....anywa, it is not as easy as saying....okay, we will charge 78 dollars for it today.....there is much more involved.....

Answer 3

Because the UN would cry foul. You just have to face facts that the rest of the world hates us because we are free.