If I were Venezuela and didn't like the US would I charge them more or less? Because of the fungibility of the product and the ability to get it from other sourcing the pricing remains the same throughout. This is what fungible is all about.
And what makes this any different than any other item out there in the retail world, may I ask?
Your questions make it clear you really don't understand what a fungible item is and how it works with the laws of supply and demand...
So either you can look it up or you expect me to explain complex economics on a message board...
Because of the fungibility of the product one can easily move to another place to purchase the product at the level economics demands rather than what is expected from a nation with enmity...
If Iraq decides to produce more and thus lowers the price of oil, it lowers all of the oil, once again because the product is fungible. Each of the other nations can simply gain more of their supply at the lesser cost and in order to compete those other nations must lower their cost as well... If it is unsustainable at that price then Iraq runs out of supply and the price rises accross the board because of the fungibility of the product...
So forth...
Once again, what makes this any different than other items in a retail marketplace which are all susceptible to the competition's pricing for the same product, I either lower my price to match or I lose some of my market share to the competitor... this is what happens in a free market?
It is actually because of competition that the pricing remains equitable accross the world for every nation. Even though there are only 5 major multi-nationals that run it, it is enough to keep the price equal because of the nature of the product...
And please tell me AGAIN why you want them to do this again verses being in a competitive market?
And as far as having an enemy that won't sell you oil, then you go to someone else to buy it?
The oil will be out there to buy? If you are no longer buying it from your enemy then someone else is buying it from them, and that someone, is now not buying it from the country that they were buying it from leaving it for you to buy, no?
And if all of the opec lot has to be competitive once one country decides to pump more or lowers the price, then everyone will be getting a better price, ala Walmart type scenario, sort of, no?
of course all of this will just make us run out of oil quicker...because there is ONLY so much of it, supposedly....
But anyway, if I am just way off base with my questions, please feel free to continue to school me, because I am pretty confused as it is...