Free Republic

The oil market is quickly realizing that many OPEC producers may not have the capacity to boost output much further. OPEC+ has been undershooting its collective production targets for months and will likely continue to do so in the months ahead. Low spare production capacity could leave the world without a buffer to offset sudden supply disruptions, which are always lurking in the global oil market. ... Most of the world’s global spare capacity is currently held by OPEC’s Middle Eastern members Saudi Arabia and the United Arab Emirates (UAE) . .. Low spare production capacity could set the stage...

On June the 30th 2009 oil mysteriously jumped by more than $1.50 a barrel during the night, to reach its highest price in eight months, the kind of swing that is caused by a major geopolitical event. The amazing, true cause of this price spike has now been released by a Financial Services Authority investigation (FSA). Although not authorised to invest company cash in trades Steve Perkins, a long standing, senior broker at PVM Oil Futures, had managed to spend $520 million on oil futures contracts throughout the night. On the morning of the 30th an admin clerk called Mr...

WASHINGTON—President Barack Obama on Tuesday called for increasing penalties on oil speculators and boosting oversight of U.S. energy as part of a plan to crack down on an "irresponsible few" who he says rig oil markets. "Rising gas prices means a rough ride for a lot of families," President Obama said from the White House Rose Garden. "We can't afford a situation where speculators artificially manipulate markets by buying up oil, creating the perception of a shortage and driving prices higher, only to flip the oil for a quick profit."

Buried in the fine print of Unocal's latest filing with regulators is an interesting dissection of the behind-closed-doors dealing that has played out as Chevron and China's CNOOC Ltd. bid against each other for one of this country's oldest oil companies. According to the filing, Unocal on July 16 almost secured a higher all-cash offer of $69 per share from CNOOC, a subsidiary of government-owned China National Offshore Oil Co. But the wheels fell off when the national oil company insisted Unocal lobby on CNOOC's behalf before Congress, according to Unocal's updated proxy statement filed with the Securities and Exchange...

Nigerian Strike To Focus On Oil ExportsNigeria’s largest labor organization has called for its 2nd national strike — to start Nov. 16 — against recent government hikes in the domestic retail oil price. This strike, however, is strategically aimed at stopping Nigeria’s lucrative oil exports. Nigeria is the world’s seventh largest oil producer, and is the fifth largest provider of oil imported by the United States. If the strike is effective, its effects could ripple through the global oil economy, causing wholesale prices to rise beyond its recent record levels, and raising U.S. gas and fuel prices.

HAMBURG: Any discussion of the post-war reconstruction of Iraq quickly turns to the country's potential oil revenues. Even the US administration has indicated that Iraq's oil wealth can pay the bill for the war's aftermath. But most oil analysts consider this idea an illusion. With 15.1 billion tons, Iraq has the third-largest oil reserves in the world after Saudi Arabia and Canada but its contribution to global oil supplies has been modest in recent years. Under the United Nations embargo Iraq was only allowed to export a limited amount of oil and could make no investments in facilities. At last...