Okay, nukes, no problem.
and maybe think about developing cars which drive on other energy sources...
You know, if The Flintstones didn't need gas back in the stone age, why do we?
Posted on 05/21/2004 10:53:18 AM PDT by Wolfstar
LONDON (Reuters) - World oil prices fell from 21-year highs on Friday as Saudi Arabia proposed hiking crude output by over two million barrels per day and said it had already substantially boosted supplies in a bid to cool markets.
Traders said oil markets were nervous ahead of an informal weekend meeting of OPEC (news - web sites) ministers and this had helped briefly to push U.S. prices below $40 a barrel for the first time in days.
U.S. light crude fell 75 cents to $40.10 a barrel, just over a dollar shy of a 21-year peak struck last Friday. London Brent crude futures lost 47 cents to $36.79.
Saudi Arabia, OPEC's largest producer and the only one with substantial spare production capacity, proposed that the cartel boost its oil output by more than two million bpd.
"The recent increase in oil demand and supply projections for the coming months point to an increase in required production from OPEC by an excess of two million bpd," Saudi Oil Minister Ali al-Naimi said in a statement.
Naimi said Saudi Arabia had already allocated its customers more than nine million bpd crude for June. This is far in excess of the kingdom's official quota of 7.63 million bpd.
An OPEC delegate also soothed fears that the cartel, which is pumping well in excess of quotas, has little spare capacity, saying Saudi Arabia could produce 10.5 million bpd if needed.
But OPEC ministers as well as analysts say the cartel will probably have limited power this time to influence prices because the spike is not due to a shortage of crude supply.
Consultancy Petrologistics said on Friday OPEC was already pumping 2.8 million bpd above quota in May, with little impact on the oil price. Besides, most OPEC crude is of the heavy, sour variety, while refineries require light gasoline-rich grades.
"I don't think that control is in OPEC's hands," UAE Oil Minister Obaid al-Nasseri said. "There are many factors behind these prices."
John Waterlow, analyst at WoodMacKenzie in Edinburgh said speculative buying, fear of supply disruptions in the Middle East and shortages of gasoline were helping drive prices.
"An unequivocal signal from OPEC could help calm the markets a bit but there are all sorts of other issues influencing the price this time," Waterlow said.
"We also have to bear in mind that the peak season for gasoline demand in the United States is yet to come and there is no sign of any immediate relief to that problem," he added.
DECISION ON EXTRA SUPPLIES ONLY IN JUNE
OPEC delegates said any formal decision on hiking crude supply would be taken at the cartel's official June 3 meeting and not at this weekend's gathering in Amsterdam.
Crude prices have risen almost 30 percent since the start of this year while gasoline prices are up 50 percent. Gasoline is especially in focus because the U.S. high-demand driving season starts in two weeks with fuel stocks far under year-ago levels.
The prices have put OPEC under pressure from consuming nations, which fear that tearaway oil prices could derail world economic growth. U.S. Energy Secretary Spencer Abraham (news - web sites) is likely to be one of many world officials who ask OPEC for more oil at the upcoming summit of energy producers and consumers.
"We are hopeful that Secretary Abraham can get a commitment from OPEC to raise production immediately," a group of U.S. lawmakers said in a letter to President Bush (news - web sites).
German Economy Minister Wolfgang Clement told reporters in Berlin: "It's a great risk. Nobody wins when the very positive development of the global economy is put at risk."
This is entirely not Bush's doing. He had nothing to do with it. He is not responsible. He should have released the oil reserves to lower gas back to 38 cents to the gallon. Signed: John Flip Kerry.
Oh, wait...
Daschole and the French looking presumptive democrat presidential nominee are very sad at this news....
What?? Ohhhhh.
Oops wrong thread.
If high oil prices push the West into recession it doesn't do them much good. They have to have demand by growing economies to make money. If recession comes, demand drops and there's a glut.
But I thought Bush had a secret deal with the Saudis to lower oil prices shortly before the election? Isn't this all part of the Bush/Saudi/Halliburton payout?
Oh good. Gasoline prices will now fall just as fast as they went up... right?
RIGHT?!
It's all Bushes fault!!!
What?? Ohhhhh.
Oops wrong thread.
HEHEHEHHEHE!
This, of course, only solves the raw materials supply issue. We need to build several new refineries.
NOW, MR. BUSH, WHILE THE PUBLIC IS PAYING ATTENTION! Get that Energy Package back into Congress!
Nymex June Contracts traded to 39.60 Low of the Day, now bouncing around 40 with 28 minutes to trade in open session
You need to stop economic expansion in China and maybe think about developing cars which drive on other energy sources...
Than maybee demand will fall back to where it meets supply.
Bad news for the 'Rats-I'm sure Clinton will get the credit. The one with the balls.
Okay, nukes, no problem.
and maybe think about developing cars which drive on other energy sources...
You know, if The Flintstones didn't need gas back in the stone age, why do we?
Tearaway? Is this another domestic polyglot attempt by the Brits to regain control of English, which used to be their native language but is now the common heritage of all mankind?
Old story about commodities -
"Petroleum crude goes up, gasoline goes up."
"Petroleum crude goes down, gasoline stays up."
Our problem is not crude oil supplies. It is refined products supplies. US refineries are hammering along at 95% utilization now, if for any reason some of the capacity goes off or is taken off line, the supply goes into crisis.
Come to the Dark Side, Luke.
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