Quote:
Originally Posted by FlamesAddiction
I'll admit. I am not an expert on the economics of oil and may have spoken out of turn. I just get the sense that increasing supply at this point isn't going to help our cause here.
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Well, on the surface that could be correct, but realistically what is the benefit in flooding the market that has surplus supply already at a ridiculously low price?
Sure, its dollars coming in the door, but are those dollars profit? If the price is low it makes more sense to hold back and wait until it comes up so you can maximize the benefit of your resource.
Its the same mistake the Saudis are making. "Flood the market and gain marketshare!!!"
Great. Lots of people are buying what you're selling, just at rock-bottom prices. So you're selling lots of stuff, just not making much while you're at it.
Congratulations?