Skip to comments.Some OPEC Members Push for $100 a Barrel Oil (Warns of the consequences of a Dollar devaluation)
Posted on 10/15/2010 9:50:01 AM PDT by WebFocus
Some OPEC members want oil prices to rise to $100 a barrel to offset the decline in the dollar.
The value of the dollar, which has slipped 13% since June against major world currencies, means that the "real price" of oil is about $20 less than current levels, Venezuela's Energy and Oil Minister Rafael Ramirez said after Thursday's OPEC meeting in Vienna.
OPEC, which accounts for 40% of global crude output, left targets unchanged and called for stronger adherence to production quotas, Bloomberg News said.
"They're concerned about the dollar because as the dollar weakens, prices go up," Nordine Ait-Laoussine, former oil minister for Algeria, told Bloomberg News.
OPEC countries are exceeding their quotas as prices creep above the $70-$80 a barrel band that Saudi Oil Minister Ali al-Naimi called "ideal."
"We would love to see $100 a barrel," Shokri Ghanem, chairman of Libya's National Oil Corp. said. "We're losing real income. Libya in particular would like to see a higher oil price."
Other countries are less certain: Kuwait's oil minister said he'd prefer a price no greater than $85 a barrel; while the Algerian minister said a price between $90 and $100 a barrel was "reasonable."
Last year OPEC held back 6 million barrels per day of oil. Its estimated that they currently are holding back 2 million barrels per day. Many countries (Mexico, Venezuela Norway and the UK) can not keep up their current pace of production. Yet there are countries who are presently growing their oil demand. Its obvious that we are being set up for oil shortages in 2011 and 2012. Instead of $100.00 per barrel oil we will be seeing over $200 per barrel oil by the end of 2012.
Obama will get impeached if this happens, see if he isn’t. to be fair, if Bush were mismanaging things this badly, all of us would be calling for him to be removed. Obama won’t last at all if he can’t avoid this from happening.
For once I think I might actually be on OPEC’s side on this.
If I had something to sell and my customer was preparing to pay me in Monopoly Money I know what I’d do.
The currency of a country is worth only so much as the goods it produces. Since the US drove away its manufacturing base, the dollar is worth less and less and less.
This is a con by the oil companies; been happening since oild was discovered. heck, spies in the oil business ON the government payroll are many. bastahds; lift the moratorium on the Guld drill in Anwar, and screw iraq, and the saudi’s, take their damned oil too, or hold mecca and Medina hostage, then blow that danged Al Asqa mosque... we’ve done enough for these lying sack of hudna pieces of goat poop.