Special offer

They Can't Stop It!!

By
Mortgage and Lending with Paramount Residential Mortgage Group, Inc NMLS# 262906

I know this is driving them crazy - They scheme, have their emergency meetings, & make significant cuts, but no matter how hard they try OPEC can't control the oil market.Oil Pump

Today they slashed 2.2 million barrels from production & what happens?? Oil drops $5 per barrel.

When they made the cut OPEC president Chakib Khelil said "I hope we surprise you -- if not, we have to do something about it". I have to imagine that he was the one surprised when prices dropped so significantly instead of rising.

Traditionally OPEC has had very little impact on the price of oil, it's more driven by the world economy. With a drastic global slowdown the demand is way down and prices follow.

This is definitely a silver lining to the slowdown - I filled my tank the other day & what used to cost over $100 now only cost $37. Woohoo!!

Comments (8)

John Mulkey
TheHousingGuru.com - Waleska, GA
Housing Guru

Dan, it seems there are some advantages to a slumping economy.  Yeah, I'd have to drain my tank in order to pack in more than $35 worth.  Lots of so-called speculators lost tons of money betting on oil.  It will be interesting to see how it fares in the coming year.

Dec 17, 2008 09:55 AM
Dan Magstadt
Paramount Residential Mortgage Group, Inc - Lake City, FL

I agree John - I believe the huge increase & following freefall was driven largely by speculators...they pulled out of real estate & went right into oil.

Dec 17, 2008 09:59 AM
Ken Tracy
Coldwell Banker Residential - Naperville, IL
Helping clients buy and sell since 2005

Hi Dan.  I was happy to see that too.

I agree, OPEC won't turn off the taps.  They need the money.

Low gas prices and mortgage rates will turn around the economy.

Ken

Dec 17, 2008 10:10 AM
Gary L. Waters Broker Associate, Bucci Realty
Bucci Realty, Inc. - Melbourne, FL
Eighteen Years Experience in Brevard County

Their problem is they want the bucks more than ever so they will try at all cost!

Dec 17, 2008 10:13 AM
James Engel
Keller Williams Realty Beverly Hills - Beverly Hills, CA
KW Beverly Hills

Isn's it insane how the price of gas dropped so dramatically??? They say that it's because there is fewer demand... But if that was the case, shouldn't they increase the price?? They play some very tricky tricky games! Thank you for sharing that with us! Happy Holidays!

Dec 17, 2008 10:21 AM
Silvia Dukes PA, Broker Associate, CRS, CIPS, SRES
Tropic Shores Realty - Ich spreche Deutsch! - Spring Hill, FL
Florida Waterfront and Country Club Living

Dan, the fact that it is almost becoming "cheap" again to gas up is almost a threat in itself.. threat to the newly energized efforts to find alternative energies, implement better fuel efficiencies (which have existed in many places in the world for years), etc.  Once people become used to "cheap gas" again, the voices calling for changes in the energy policies will become less and less...and any efforts will die on the vine.  Once that happens, gas prices will surely increase again!

Dec 17, 2008 11:02 AM
Dan Magstadt
Paramount Residential Mortgage Group, Inc - Lake City, FL

I agree James...you'll go crazy trying to figure these guys out, oil, mortgage, finance, any of them

You have a point there Silvia...

Dec 17, 2008 11:08 AM
real estate real estate
Providence, RI

These oil people are so disgusting. When prices are up, they say it is demand. When prices are down, they say it is over supply. Anyway, only high prices are normal. I think now it is time for them to spit out what they have taken from consumers.

Dec 17, 2008 11:56 AM