The ConocoPhillips Spin-Off: A Profit Opportunity Three Years in the Making

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  1. Inkeri says:

    “Right now OPEC is producing all out. IF precis fall to $50 or so, they’d cut back a few million barrels and precis would stop there.Before they had so much excess production that quotas were hard to enforce.”Yes, but… I’m talking about huge demand destruction due to a tanking economy, not production. There is a balance between the two.Even though Saudi Arabia has had a semi-effective cartel to control oil production since the 1970’s, we’ve still had periods when crude dropped, such as during the late 1980s. Oil-rich countries (there is more than just one, and they all have different motives) still need income, and when precis drop, they tend to overproduce (relative to the market demand) to attempt to compensate for the lost revenue.Just like housing, oil precis are not at a “permanently high plateau”. Oil has gone up spectacularly. It can and has gone down spectacularly as well.I know, I know: “It’s different this time.” *shrugs shoulders*


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