Oil Prices Fall on OPEC Output Comment

AP/YooHoo! ^ | Monday November 12, 9:40 am ET | Pablo Gorondi

[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.

[BlabItGrabIt]

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.

[Rick_Michael]

“See, they are our friends.”

haha...that was really funny.

[ripley]

“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?

[liberallarry]

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.

[RightWhale]

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.