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OPEC announces production cut ...
Posted by: McQ on Thursday, December 18, 2008

But traders were unimpressed, and oil futures took an 8% hit after the announcement.

OPEC is trying to cut production by 2.2 million barrels a day, its third announced production cut since September. But compliance has only been about 50%. There are some OPEC nations which are hurting and can't really afford to cut production.
Next year's outlook is increasingly bleak as economic indicators show a deep global recession taking hold, causing oil demand to fall from the United States to China.

JPMorgan cut its 2009 average crude oil price forecast to $43 a barrel from $69 following OPEC's cut, and analysts say more losses are in store until a sufficient supply is taken off the market or demand levels swing back up.
Obviously almost all observers expect the price to rise at some point. Most I've heard or read think that its new price level will be reached somewhere around May or June. However, unless demand picks up precipitously, it isn't going to be anywhere near its record high. The only way we'll see $4 a gallon gasoline soon is if it is taxed to that level - and that's not at all something which is impossible by any stretch.
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Previous Comments to this Post 

The libs in D.C., as well as in many states, will see these current "low" gas prices as the perfect time to enact new gas taxes. They saw we will still drive with gas at $4/gal. We drive less, but we still have to drive. This will combine their desire to force us out of our cars and try to get more money from us. It will not work as they assume it will, but they will do it anyway.
Written By: jjmurphy
In the late 80s, the Republican introduced a bill to place a $5/barrel tariff on all imported oil. The money would be collected for the express purpose of paying off the National debt. The secondary purpose was to provide a boost to the domestic oil companies that were currently in recession. $0.25/barrel would be used to administer the program and $4.75 would be given to the treasury to pay down the debt. The bill failed to gain enough support to get it out of committee. The rationale for the failure was it would increase the price of gasoline at the pump by 9 cents a gallon. (Had the bill passed, the National debt would have been erased by 1991.)

Along with tax increases that we cannot even dream about at this time, I expect some combination of an imported oil tariff plus a huge increase in the gasoline tax from the new Democratic administration. But the purpose will not be to pay down the debt. The purpose will be to offset the increase in the debt by any means necessary - and who cares about the price of evil gasoline.
Written By: SShiell
URL: http://
I hope they’re filling up the SPR as fast as possible with the price being low.
Written By: Keith_Indy
The libtards will get the price back to $4 a gallon, one way or the other.
Written By: bill-tb
URL: http://

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