Petro Prices Fall; Conspiracy to Rebound

Guess who wants to conspire with producers to coordinate lowering of output in order to boost prices / profits: Venezuelan Energy and Mines Minister Rafael Ramirez has said oil prices had fallen "too much" and that he would favor an extra meeting [of OPEC].


Nadir said...

Paul, you don't have a problem with OPEC propping up the price, do you? Just as they can gouge when demand is high, they should be able to set a minimum price, right, even if the market dictates that the price should drop further?

Paul Hue said...

To whatever extent I oppose monopolies, I oppose OPEC and its members' collaboration to set prices. However, with the free enterprises acting as intermediaries between them and consumers, things mostly work out well for everyone.

I merely point out that you and Tom would turn flips if Exxon and BP colluded in this way.

And of course I reject your notion of the term "gouge" to describe the natural, free-market prices that materialize during times of sudden shortage. Those prices do not result from OPEC-type collusion, though you and Tom imagine that they do. Those prices you guys decry as immoral, but nary a peep when OPEC actually does collude.