- Sep 26, 2000
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http://news.yahoo.com/s/nm/20060422/bs_....HQA;_ylu=X3oDMTA3MXN1bHE0BHNlYwN0bWE-
OPEC says oil supplies not the problem
OPEC oil-producing nations said on Saturday oil prices have risen despite a well-supplied market, adding it was urgent to find new indicators of price trends to supplant the now-unreliable gauge of oil stocks.
"This price rise occurred despite the fact that the market continues to be well-supplied," OPEC official Adnan Shihab-Eldin told a meeting of the International Monetary Fund's policy committee on behalf of the oil cartel.
Here's the part I don't understand:
"The picture on the products side remains tight, given the persistently low levels of refinery spare capacity and more stringent products specifications" in the United States, the OPEC official said.
I am under the impression that it would be against the law of supply and demand to build "spare capacity". In fact I can not find one instance of a barrel of crude oil going unrefined due to lack of capacity.
Why would any company build more "spare capacity"? Wouldn't it just go unused or have to lower its prices to take oil away from current refineries? And why would a company want to charge less at the refineries it already operates?
Lastly, I don't understand how the F*CK with GAS PRICES SO HIGH the US ENERGY SECRETARY IS NOT GOING TO ASK OPEC TO INCREASE PRODUCTION????????
WTF???
WTF???
WTF???
OPEC says oil supplies not the problem
OPEC oil-producing nations said on Saturday oil prices have risen despite a well-supplied market, adding it was urgent to find new indicators of price trends to supplant the now-unreliable gauge of oil stocks.
"This price rise occurred despite the fact that the market continues to be well-supplied," OPEC official Adnan Shihab-Eldin told a meeting of the International Monetary Fund's policy committee on behalf of the oil cartel.
Here's the part I don't understand:
"The picture on the products side remains tight, given the persistently low levels of refinery spare capacity and more stringent products specifications" in the United States, the OPEC official said.
I am under the impression that it would be against the law of supply and demand to build "spare capacity". In fact I can not find one instance of a barrel of crude oil going unrefined due to lack of capacity.
Why would any company build more "spare capacity"? Wouldn't it just go unused or have to lower its prices to take oil away from current refineries? And why would a company want to charge less at the refineries it already operates?
Lastly, I don't understand how the F*CK with GAS PRICES SO HIGH the US ENERGY SECRETARY IS NOT GOING TO ASK OPEC TO INCREASE PRODUCTION????????
WTF???
WTF???
WTF???