by Sandy » Mon Dec 22, 2014 9:17 pm
The effect of OPEC, and its ability to have such tight control of the market, is waning. US production and development has increased, countries like Mexico, Venezuela, Iran, and even Russia, are more desperate for the revenue, and as a result, less prone to cooperate with price fixing, and a lot of the economic controls on oil production, refining, and sales, from the previous administration, designed to the full advantage of the oil producers and suppliers, have been allowed to lapse. Plus, the increase in the number of energy efficient automobiles on the road and some other conservation methods as well as alternative fuels, have reduced demand significantly. I don't think the price will bounce back as quickly or as high in the future. The sale of oil futures doesn't indicate that it will.