[Obadiah]

In OPEC countries, Mayor explained, it’s not about how much it costs to get the oil out of the ground, or how much they can sell it for, or even what their subsequent profit margin is, Mayor said. For OPEC countries, it is all about something entirely different.

“Their real break-even costs are the commitments that some of the less economically robust (OPEC) players have made to their populations for social services that their government funds largely through oil exports and hydrocarbon sales. Those estimates are in the $100-130/bbl range for many of those countries.

So, it really isn't about cost, or profit for that matter. It's all about manipulating the price to keep the domestic population comfy. So, in reality, the price of oil is manipulated and it is not really a function of supply and demand as many contend.

[thackney]

Holding back production until you get a price you are willing to sell at is exactly what a supply curve is.

[Balding_Eagle]

So, in reality, the price of oil is manipulated and it is not really a function of supply and demand as many contend.

And how does that make oil different than most other commodities?

[Paladin2]

http://www.oxfordenergy.org/wpcms/wp-content/uploads/2011/03/WPM40-AnAnatomyoftheCrudeOilPricingSystem-BassamFattouh-2011.pdf

[Paladin2]

The price of oil is not about costs, it is about price.....