In article , dpb wrote:

John Gilmer wrote:
...
The free market is quite good at maintaining the flow of oil to where its
needed. When oil went to $150 a year or so ago, the free market gave the
producers a HARD slap. Now oil is trading around $50.

The oil market isn't totally free market since OPEC is an avowed open
cartel. They don't have total control but certainly influence world
supply (and hence price) significantly from what it would be if it
weren't in existence as a coordinated force.

Maybe at the margins. But this last up and downswing has shown that
they don't have all that much impact in real life. You can't fight the
laws of supply and demand. Especially when there are many outside the
cartel and those inside of it aren't all the disciplined.


Much, if not all, of the the drastic reduction in oil prices was owing
to the overall economic downturn initiated by other economic factors far
more than oil prices. There was a minor cut in US gasoline consumption
at the peak before the debacle hit, but it was quite small (2% kind of
numbers), hardly cause for complete runback. And, of course, the high
price was driven in large part by speculation of continued economic
growth and futures trading on that speculation rather than on actual
production shortages. IOW, the bubble would have burst on its own anyway.
Pretty much my point. (grin).

--
"Distracting a politician from governing
is like distracting a bear from eating your baby."

--PJ O'Rourke