Skip navigation

From the WSJ’s Morning Brief:

Oil prices are trading higher this morning following OPEC members’ decision last night to cut production. Such premeditated decisions on either side of the supply-and-demand equation don’t always bring their intended effects. But even with demand now expected to slow this year any tightening of the OPEC spigot wouldn’t be good for the faltering global economy.

Then, from a comment on the Environmental Economics Blog–

BUT I heard on the radio this morning the head of OPEC himself claim that gasoline prices would come down despite the cuts in production.

Gosh…I wonder why he’d say that…I wonder…I wonnnnnnderrrrrr…

Of course falling prices are possible if demand drops more than supply does, though clearly the commenter believes it is only a political ploy. In any case, with less supply prices will be higher than they would be otherwise.

OPEC’s strategy? I am not sure and a bit surprised. I would be less surprised to see them increasing quotas, trying to reestablish some countries’ dependence on oil—to reverse recent trends toward more sustainable and greener energy sources.

What do you think?

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: