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Oil Prices Fall on OPEC Output Comment
AP/YooHoo! ^ | Monday November 12, 9:40 am ET | Pablo Gorondi

Posted on 11/12/2007 7:16:10 AM PST by rightinthemiddle

Oil Prices Fall $2 on Word That OPEC Will Talk About Increasing Output at Upcoming Meeting

Oil prices fell about $2 a barrel Monday after reports that OPEC would discuss increasing output at an upcoming meeting in a bid to cool record crude prices.

Saudi Arabia's oil minister said Sunday that the Organization of Petroleum Exporting Countries would discuss the issue of boosting production when it meets later this year.

"The comments by the Saudi oil minister on the weekend didn't necessarily say that they're going to increase production, it wasn't quite that extreme, but the mere fact that he's speaking aloud about it shows that the issue is there," said Tobin Gorey, commodity strategist at the Commonwealth Bank of Australia in Sydney.

Light, sweet crude for December delivery dropped $2.40 to $93.92 a barrel in electronic trading on the New York Mercantile Exchange by afternoon in Europe. In London, December Brent crude futures fell $1.92 to $91.26 a barrel on the ICE Futures exchange.

Reports of an attack an Exxon Mobil oil export terminal in Nigeria temporarily halted the slide, but company officials said operations were not disrupted and calm appeared to have been restored.

Heating oil futures fell 4.88 cents to $2.5700 a gallon (3.8 liters) on the Nymex, while gasoline prices declined 5.89 cents to $2.3971 a gallon. Natural gas futures fell 15.4 cents to $7.743 per 1,000 cubic feet.

(Excerpt) Read more at biz.yahoo.com ...


TOPICS: Business/Economy; Front Page News; News/Current Events
KEYWORDS: bubble; chicken; energy; gasprices; little; oil; opec
See, they are our friends.
1 posted on 11/12/2007 7:16:11 AM PST by rightinthemiddle
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To: Hydroshock

ping


2 posted on 11/12/2007 7:17:47 AM PST by rightinthemiddle (Without the Media, the Left and Islamofacists are Nothing.)
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To: rightinthemiddle

About 12-20% of the ppb is risk premiums.


3 posted on 11/12/2007 7:17:51 AM PST by Perdogg (Elections have consequences.)
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To: Perdogg

Yup, maybe more. “Risk” is always perceived.


4 posted on 11/12/2007 7:18:46 AM PST by rightinthemiddle (Without the Media, the Left and Islamofacists are Nothing.)
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To: rightinthemiddle

American leftist politicians have put us in this boat. meanwhile the cubans will be sucking down our potential gulf reserves while we are not allowed to tap these (not to mention Alaskan ANWR and the tar sands out west)....thanks to our Liberal congressman and senators.

these b@st@rds should be tried for TREASON!!!!!!!


5 posted on 11/12/2007 7:20:41 AM PST by Vaquero (" an armed society is a polite society" Heinlein "MOLON LABE!" Leonidas of Sparta)
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To: Vaquero

I agree.

Watch for the Russians and/or Venezuela to start helping the Cubans with Gulf drilling.


6 posted on 11/12/2007 7:22:30 AM PST by rightinthemiddle (Without the Media, the Left and Islamofacists are Nothing.)
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To: rightinthemiddle
FINDING DEAL$ ON GA$OLINE:
(A work in progress. Please FReepmail other suggestions)


12 Month National Average for Regular Unleaded by AAA.com


Gas prices could fall with a TAX CUT, too!


7 posted on 11/12/2007 7:24:51 AM PST by martin_fierro (< |:)~)
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To: martin_fierro

Thanks for the post.


8 posted on 11/12/2007 7:25:46 AM PST by rightinthemiddle (Without the Media, the Left and Islamofacists are Nothing.)
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To: Vaquero
You are correct of course. How far do we suppose OPEC prices would fall were we to announce we were drilling our own from this point on, AND refining our own?

Socialists in our government, regardless of what letter is in front of their name, who sit by and let Chavez and Castro drill off our shores, not to mention China, but will not allow the most industrialized nation (for now anyway) do the same, are aiming for total Globalization, with the US at the bottom of most things!

9 posted on 11/12/2007 7:27:39 AM PST by gidget7 ( Vote for the Arsenal of Democracy, because America RUNS on Duncan!)
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To: rightinthemiddle

itco already does drill in our gulf.


10 posted on 11/12/2007 7:28:31 AM PST by gidget7 ( Vote for the Arsenal of Democracy, because America RUNS on Duncan!)
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To: gidget7

Citco, sorry


11 posted on 11/12/2007 7:29:01 AM PST by gidget7 ( Vote for the Arsenal of Democracy, because America RUNS on Duncan!)
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To: Vaquero
American leftist politicians have put us in this boat.

Not really.

12 posted on 11/12/2007 7:30:29 AM PST by DungeonMaster (Al Gore, the Jessie Jackson of weather.)
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To: rightinthemiddle

Good


13 posted on 11/12/2007 7:30:48 AM PST by Hydroshock ("The Constitution should be taken like mountain whiskey -- undiluted and untaxed." - Sam Ervin)
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To: DungeonMaster
Not really.

then who?

14 posted on 11/12/2007 7:32:43 AM PST by Vaquero (" an armed society is a polite society" Heinlein "MOLON LABE!" Leonidas of Sparta)
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To: Vaquero
then who?

Do you know what it means to say that oil prices are up because of speculation?

15 posted on 11/12/2007 7:38:13 AM PST by DungeonMaster (Al Gore, the Jessie Jackson of weather.)
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To: DungeonMaster; Calpernia; cbkaty; Nervous Tick; ex-Texan; RockinRight; NVDave; Neidermeyer; ...

Economy/Credit/Housing Issues Ping List

If you want on or off this list let me know.


16 posted on 11/12/2007 7:40:23 AM PST by Hydroshock ("The Constitution should be taken like mountain whiskey -- undiluted and untaxed." - Sam Ervin)
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To: rightinthemiddle
I assume you are being sarcastic.

The way I see it: It is not in their best interest to see prices rising too high, as purchasing will drop off. The goal is to squeek out as much money from the consumer, w/o shutting off the flow o dollars.

Releasing more oil calms speculators, prices slow, people purchase more, everyone is happy . . . except for the consumer that continues to pay the rising fuel costs.

17 posted on 11/12/2007 8:09:14 AM PST by Bear_Slayer (When liberty is outlawed only outlaws will have liberty.)
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To: DungeonMaster

Yes but if we were glutted with our OWN OIL, this situation would never have reached this point and speculators would be bringing in boom levels of, oh say, $35 a barrel.


18 posted on 11/12/2007 8:11:17 AM PST by Vaquero (" an armed society is a polite society" Heinlein "MOLON LABE!" Leonidas of Sparta)
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To: rightinthemiddle

I thought they couldn’t increase output and were operating at capacity?!?!


19 posted on 11/12/2007 8:13:11 AM PST by Red in Blue PA (Truth : Liberals :: Kryptonite : Superman)
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To: Vaquero
Yes but if we were glutted with our OWN OIL, this situation would never have reached this point and speculators would be bringing in boom levels of, oh say, $35 a barrel.

So you actually believe that our oil producers will refuse to sell to the highest bidder and will only sell oil here? I still don't believe you understand the idea of oil being high on speculation.

20 posted on 11/12/2007 8:13:24 AM PST by DungeonMaster (Al Gore, the Jessie Jackson of weather.)
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To: Red in Blue PA

LOL! That’s right...but, once the price gets higher, they can find more.

They’d love to have oil settle in with a bottom of $75...remember when peanut butter was cheap? Coffee? Beef?


21 posted on 11/12/2007 8:15:13 AM PST by rightinthemiddle (Without the Media, the Left and Islamofacists are Nothing.)
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To: DungeonMaster

there would not be speculation of this type, if there was more than enough of it in the market.

what would ‘fuel’ that kind of speculation if there was a surplus of oil?


22 posted on 11/12/2007 8:24:19 AM PST by Vaquero (" an armed society is a polite society" Heinlein "MOLON LABE!" Leonidas of Sparta)
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To: rightinthemiddle
According to Simmons they can't increase their output. Recent reports seem to confirm this - North Ghawar is rapidly declining and no one else has any spare capacity.

Look for a huge surge in prices when people realize this.

23 posted on 11/12/2007 8:24:48 AM PST by liberallarry
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To: Vaquero
there would not be speculation of this type, if there was more than enough of it in the market.

what would ‘fuel’ that kind of speculation if there was a surplus of oil?

So in your world there is plenty of oil but liberals won't let anyone get it? Is that all in ANWR?

24 posted on 11/12/2007 8:33:12 AM PST by DungeonMaster (Al Gore, the Jessie Jackson of weather.)
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To: DungeonMaster

ANWR, Colorada, Florida & California Coast and numerous other places. Not to mention no new nuclear facilities since the 70s.


25 posted on 11/12/2007 8:47:37 AM PST by rb22982
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To: rightinthemiddle

A lot of oil options expire this week and if the $100 mark isn’t hit there is expected to be a big sell-off.


26 posted on 11/12/2007 8:49:20 AM PST by AU72
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To: DungeonMaster
So in your world there is plenty of oil but liberals won't let anyone get it? Is that all in ANWR?

pretty smarmy answer.....all I am saying is that if we were allowed to use our resources and there were enough world wide to fuel everyones needs, then perhaps the prices would be lower....

check out 'supply and demand', I am not sure, but I believe it is one of the basic tenents of capitalism....

27 posted on 11/12/2007 8:49:42 AM PST by Vaquero (" an armed society is a polite society" Heinlein "MOLON LABE!" Leonidas of Sparta)
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To: liberallarry
Look for a huge surge in prices when people realize this.

Already there. This is peak oil.

28 posted on 11/12/2007 8:52:38 AM PST by RightWhale (anti-razors are pro-life)
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To: rb22982

Not to mention, not one new oil refinery along the gulf or CA or the east coast been built sine 1973, however, over 150 small refineries that made products including gas are closed and sitting idle, greenies and EPA crap keep them from being refurbished at this time. Those small refineries can take the load of big ones for stuff like kerosene, etc. and the land they sit one is already contaminated, so what’s the big deal?


29 posted on 11/12/2007 9:15:12 AM PST by RSmithOpt (Liberalism: Highway to Hell)
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To: Vaquero
pretty smarmy answer.....all I am saying is that if we were allowed to use our resources and there were enough world wide to fuel everyones needs, then perhaps the prices would be lower....

Your posts seem to require that because they don't make sense. You don't seem to be aware of how supply and demand are effected on a finite resource like oil. Your initial post on which I commented "American leftist politicians have put us in this boat." is just about equal to saying "liberals are dumb" and thinking that's an intelligent conservative post.

check out 'supply and demand', I am not sure, but I believe it is one of the basic tenents of capitalism....

As is speculation on investor money. It's so old it's in the bible yet you don't seem to get it.

30 posted on 11/12/2007 9:49:16 AM PST by DungeonMaster (Al Gore, the Jessie Jackson of weather.)
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To: RightWhale
Already there. This is peak oil.

You're probably right.

Did you see the report from a German group claiming we peaked last year or so? I can probably find it again on the net and send you the link. But it's not great, in my opinion, just a rehash. Nowhere near the class of Matt Simmons.

I've been reading some talk of $160/barrel soon. Think there's anything to it?

31 posted on 11/12/2007 10:17:19 AM PST by liberallarry
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To: DungeonMaster
Oil is not a finite resource like we think of a finite resource like our time on earth for example. The amount of oil is a function of our fuel efficiency and our ability to extract it with better technology. The usable reserves of crude oil are higher today than in 1980 because today we can drill deeper and find oil in places we could not even detect earlier. There is no lack of crude oil in the world, we have enough for more than 200 years. If the amount of oil was finite like we think how come known reserves are higher today than 30 years ago.

Just when we think we are running out of oil, we develop better technology to extract oil from shale rocks in the mid west and Canada. We live in a world of unlimited resources just like our economy which is not a fixed pie but an ever expanding and growing pie.

I work in the oil industry and see this data on a daily basis. One reason oil price is high is that we do not use crude oil but refined oil and we have not built a new refinery in the USA in over 30 years. That and political pressures and the futures market and the environmental wackos. The world is swimming in crude oil if you just looked at the facts.

32 posted on 11/12/2007 10:17:46 AM PST by Maneesh (A non-hyphenated American.)
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To: liberallarry

No. Not that it couldn’t happen, for example if Iran closes the Strait. The peak might well be quite broad with prices remaining near the present level for several years. 10-15 years from now oil production might well be falling and the alternatives coming on line and the price rising.


33 posted on 11/12/2007 10:20:27 AM PST by RightWhale (anti-razors are pro-life)
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To: RightWhale
How many times previously have you heard about peak oil ? This has been ongoing since the 1970’s and is absurd on its face. The amount of oil reserves keeps increasing because our ability to extract it gets better everywhere. If the know reserves and our ability to extract them keep going up, how can we call this peak oil. This is pure scare mongering and appeals to our emotions and natural negative proclivities. I work in the oil industry and to say that we have reached peak oil is absurd. If you knew the amazing drilling operations about to come on board in the next 5 - 10 years, you would realize how absurd that statement is.
34 posted on 11/12/2007 10:21:33 AM PST by Maneesh (A non-hyphenated American.)
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To: Maneesh

Believe it or not this has been current events (eyewitness) for me for 50+ years. But, thanks for the lecture. No, this is really it, we have arrived.


35 posted on 11/12/2007 10:24:25 AM PST by RightWhale (anti-razors are pro-life)
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To: Maneesh
Oil is not a finite resource like we think of a finite resource like our time on earth for example. The amount of oil is a function of our fuel efficiency and our ability to extract it with better technology. The usable reserves of crude oil are higher today than in 1980 because today we can drill deeper and find oil in places we could not even detect earlier. There is no lack of crude oil in the world, we have enough for more than 200 years. If the amount of oil was finite like we think how come known reserves are higher today than 30 years ago.

We can also grow oil, but what we're talking about is crude that comes out of the ground. The size of the earth is finite, the amount of oil available is finite.

Discovering more doesn't change the definition of the word finite.

It is not liberals preventing us from making more refinieries, it's because the corporations that refine oil don't want to make more. Peak oil is a real thing and consumption will start to drop when the price gets high enough. At that point we will have more refining capacity than we need.

Also, oil price is not based on refining capacity it's based on the demand for oil. Having more refineries would do what for for oil demand? Think about it.

36 posted on 11/12/2007 10:34:09 AM PST by DungeonMaster (Al Gore, the Jessie Jackson of weather.)
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To: DungeonMaster
Also, oil price is not based on refining capacity it's based on the demand for oil. Having more refineries would do what for for oil demand? Think about it.

Sorry to interject myself into your conversation, all I'm doing is adding a reply to your question. Additional refineries would, at the very least, stabilize the supply chain and throughput. There have been numerous pricing spikes in the past 18 months simply because a refinery was taken off line (repairs, for etc.)

37 posted on 11/12/2007 10:47:43 AM PST by GreenAccord (Bacon Akbar!)
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To: GreenAccord
Sorry to interject myself into your conversation, all I'm doing is adding a reply to your question. Additional refineries would, at the very least, stabilize the supply chain and throughput. There have been numerous pricing spikes in the past 18 months simply because a refinery was taken off line (repairs, for etc.)

Yes, I agree. But that pertains to the overall supply line to our gas tank. The issue we were discussing is the price of oil.

38 posted on 11/12/2007 11:08:23 AM PST by DungeonMaster (Al Gore, the Jessie Jackson of weather.)
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To: DungeonMaster

Ah, pre-refinery supply chain. Thanks for the clarification.


39 posted on 11/12/2007 11:18:41 AM PST by GreenAccord (Bacon Akbar!)
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To: rightinthemiddle
"Watch for the Russians and/or Venezuela to start helping the Cubans with Gulf drilling."

China has already beat them to it ...
40 posted on 11/12/2007 11:22:55 AM PST by Liberty Valance (Keep a simple manner for a happy life :o)
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To: DungeonMaster
Do you know what it means to say that oil prices are up because of speculation?

That's a BUMP!!! Refineries closing for no one's buying the distillates. Contango and Arbitrage with all available tankers full of crude.

41 posted on 11/12/2007 11:31:19 AM PST by BlabItGrabIt (Sometimes nothing is a real cool hand...)
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To: rightinthemiddle

“See, they are our friends.”

haha...that was really funny.


42 posted on 11/12/2007 1:48:05 PM PST by Rick_Michael (The Anti-Federalists failed....so will the Anti-Frederalists)
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To: DungeonMaster

“your posts seem to require that because you make no sense.”
“it’s so old it’s in the bible, yet you don’t seem to get it.”

brilliance, absolute brilliance.

/sarcasm off?


43 posted on 11/13/2007 3:56:48 AM PST by ripley
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To: RightWhale
The peak might well be quite broad

Even assuming that best-cast of flat supply won't demand keep growing?

I haven't done the numbers but China is sitting on huge dollar reserves which it can use to keep bidding up the price so that the squeeze falls on everyone else, particularly us. It's true that will reduce our ability to buy their stuff but what other choice do that have?

That's the scenario which worries me.

44 posted on 11/13/2007 8:34:56 AM PST by liberallarry
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To: liberallarry

NYMEX crude index 91.10. It’s like the dungeon master got a cell call during waterboarding and the prisoner gets to breathe without anxiety for a while.


45 posted on 11/13/2007 9:35:37 AM PST by RightWhale (anti-razors are pro-life)
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