Rizal Philippines
December 5, 2015
Oil prices in free fall after OPEC agree on production cut - Fortune
Why are activists not rising in arms vs govt. now that oil prices are dropping like rock. Diesel price, the fuel for many is down to as low as P23.50 per liter. down from a high of P50+ about a year ago. Good for our economy - drivers, transpo, travel, and factories, power producers.
For unknown reason there are no protests from the activiists (the antis - Hegelian animals) vs the govt. Well, the govt has nothing to do with price under the free market conditions. If the govt had subsidy for the fuel and the prices dropped this low, the govt could have lost billions! As if people do not understand the free market.. Now we are benefiting from the free world market bonanza.
Why are the prices falling down? Because of low demand - Europe economy is not ticking as it should, the countries have developed their renewables, and US production from shale and fracking has gone up.
And lately, OPEC in its latest meeting failed to agree on cutting down their production The head of OPEC is not cutting down its daily production of 30 million barrels a day (Production must be cut down to raise prices) But perhaps, KSA can not sustain its govt budget with $40.00 per barrel. Note that Argentina, and Russia which are also starved for cash, are not part of OPEC. Thus with OPEC in disarray, prices are most likely to fall below $40.00 even further. The move is to force US shale producers to lose money and cut back on their production
And then the wars will continue at ME. Wars spook the world market and drive up oil prices. Agree?
