Skip to comments.Oil prices rise on speculation of OPEC production cut
Posted on 04/23/2013 12:22:12 PM PDT by Laurent.w
"There are rumors that OPEC may call for an emergency meeting to discuss output if Brent prices stay below $100 a barrel," Ker Chung Yang, senior investment analyst at Phillip Futures in Singapore, told AFP.
Sanctions-hit Iran, OPEC's fourth largest producer, said on Wednesday that it considers the "logical" price of crude to be around $100-$120 a barrel.
Analysts said the $100 price for Brent is considered ideal by Saudi Arabia, the world's top oil exporter, and falling below it could prompt OPEC to cut back on output.
(Excerpt) Read more at globalpost.com ...
And please ... no “this is just market conditions pushing the prices back up” BULL$H!T. It will be a cartel price set outside of market pressures.
Libya Calls for Higher Oil Quota in OPEC
Libya will seek to increase its oil output quota in the Organization of the Petroleum Exporting Countries, Oil Minister Abdelbari al-Arusi said on Monday.
OPEC dropped individual allocations in 2011 when it adopted a 30-million-bpd output target. But with production rising in Libya and Iraq the issue of quotas may need to be addressed at some stage.
Libya’s last output target, under a 2008 deal where quotas were not issued publicly, was 1.47 million bpd. Al-Arusi said that current Libyan oil production stood at around 1.5 million barrels per day.
We should have defeated Saddam, and K E P T all the oil!!
Things have changed.
Even before Iraq, Canada and the US began to increase production significantly, OPEC on several occasions met, decided on cuts in production, and most member nations simply didn’t cut back.
Iraq production is skyrocketing, and I can’t see them cutting back, unlike SA, most countries in OPEC, when the price of crude is dropping, absolutely must increase production.
The rumor may be true, but I don’t believe they’ll be able to pull it off.
Why don’t we just screw OPEC and flood our oil onto the market? Oh yeah Obama and the environazis!
There is good news in this. It shows that gone are the days that OPEC can increase production to undercut domestic producers. This insures that Canadian Sand and Balkan Shale will continue.
Like it or not, OPEC cartel is part of the market. If they want to not sell below a certain price, that is a significant part of the supply market.
Just as a labor may not be willing to sell his hours below a set price, they often decide to not sell oil below a certain price as well.
That’s a good question. But since the price of crude has dropped I think the number of pupping wells in the US has also dropped. In my opinion crude would even come down more if the US pumped more oil.
Sanctions-hit Iran, OPEC's fourth largest producer, said on Wednesday that it considers the "logical" price of crude to be around $100-$120 a barrel. Analysts said the $100 price for Brent is considered ideal by Saudi Arabia...The Saudis will maintain a price that will allow them to avoid budget deficits -- the gov't is not the only employer, but the patronage flows down through those 2000 corrupt princes, and ultimately everything is owned and run by an oligarchy. The only thing that may make that change is the status of the Iranian-Saudi relationship -- if an out and out war (not just the proxy war which has gone on over 30 years) the Saudis will crater the price of oil by pushing up production, to break Iranian finances; and if the Saudis and Iranians reach rapprochement (for example, if the Iranian regime is overthrown) the price will rise above $100/bbl.
OPEC Has Already Turned to the Euro
February 18, 2004
...The source for the euro exchange rate is the Federal Reserve, and I have calculated the euro's average exchange rate to the dollar for each year based on daily data.We can see from column (4) in the above table that in 2001, each barrel of imported crude oil cost $21.40 on average for that year. But by 2003 the average price of a barrel of crude oil had risen 26.0% to $26.97 per barrel. However, the important point is shown in column (6). Note that the price of crude oil in terms of euros is essentially unchanged throughout this 3-year period.
US Imports of Crude oil (1) (2) (3) (4) (5) (6) Year Quantity (thousands of barrels) Value (thousands of US dollars) Unit price (US dollars) Average daily US$ per € exchange rate Unit price (euros)
3,471,066 74,292,894 21.40 0.8952 23.91 2002 3,418,021 77,283,329 22.61 0.9454 23.92 2003 3,673,596 99,094,675 26.97 1.1321 23.82
As the dollar has fallen, the dollar price of crude oil has risen. But the euro price of crude oil remains essentially unchanged throughout this 3-year period. It does not seem logical that this result is pure coincidence. It is more likely the result of purposeful design, namely, that OPEC is mindful of the dollar's decline and increases the dollar price of its crude oil by an amount that offsets the loss in purchasing power OPEC's members would otherwise incur. In short, OPEC is protecting its purchasing power as the dollar declines.