Seriously, read it. It’s about oil prices and what the players are attempting to say about them.
Now that the price is crashing, price has become a very dear concern for the oil-producing countries. While just a few short months ago they were in the driver’s seat, now they are being dragged along tied to the bumper. And they don’t like it.
British PM Gordon Brown comes along and wants to stabilize prices and forge a new “partnership” between the oil-consuming and oil-producing countries.
Would someone please tell that blinking idiot that price itself is the bloody partnership. That it regulates both consumption and production. And that high prices contain within themselves the seeds of lower prices, and vice versa. That oil prices are historically cyclical. That they rise and fall. And that consumption is a function of production and price; production a function of consumption and price. Price is the damn market. Even when someone is trying to fix it at one end or tax it at another. Price is what makes or breaks a market, increases or decreases demand. It is what the parties to the sale of a thing agree upon.
Getting an acceptable price is why a producer produces; and paying an acceptable price is why a consumer consumes.
The only fair price is the price that buyer and seller arrive upon at the point of sale. If the buyer does not like a price, he buys less or not at all. And the seller will get as high a price as he can, yet that spurs other sellers, with higher initial costs, to get into the market, which increases supply, which eventually reduces price.
Now, government and its perpetual adherents would love to find a way to “stabilize” oil prices by, I’m certain, getting more out of it for itself. Thus guaranteeing only upward “stability.”