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| International-UN-NGOs |
| OPEC ministers cut output at meeting |
| 2008-10-24 |
| The OPEC cartel on Friday decided to slash oil production by 1.5 million barrels a day as of next month in an attempt to stem plunging prices for crude. The size of the cut reflected concerns within the Organization of Petroleum Exporting Countries that the bottom appears to be falling out of the market. Crude is selling for 50 percent less than this year's historic heights because the worldwide economic crisis has put a huge crimp in demand. But prices sagged, suggesting that the market was more concerned with the economic turmoil reaching into all corners of the globe than crude availability. If economies in the U.S. and other leading crude consumers continue to deteriorate, industries will use less oil, making it a buyer's market. Despite the OPEC cut, benchmark crude futures fell $3.99 to $63.85 a barrel in electronic trading on the New York Mercantile Exchange by midafternoon in Singapore. The contract overnight rose $1.09 to settle at $67.84. The language of an OPEC statement announcing the decision also reflected how seriously the producers' cartel viewed the erosion of its revenues, as did the unusually short deliberations leading to the decision. "Oil prices have witnessed a dramatic collapse — unprecedented in speed and magnitude," said a statement from the 13-nation organization. "This slowdown in demand is serving to exacerbate the situation in a market which has been oversupplied with crude for some time." The cut announced is already sizable. But because OPEC nations continue to overproduce by about 300,000 barrels a day from the official quota of close to 29 million barrels the total amount that the 13-nation group wants to take off the market is even higher — around 1.8 million barrels a day. And OPEC officials left no doubt that they were ready to slice deeper quickly if Friday's decision does not end the price freefall. Friday's meeting was called unexpectedly in response to prices that have disintegrated since their historic high of nearly $150 in July. And OPEC President Chakib Khelil said OPEC was ready to convene another emergency session before its next planned gathering in December in Algeria "if there are further decisions that have to be made" on slashing prices. |
| Posted by:ed |
| #8 #7 This is a good time for the political leadership to affirm support for automobile downsizing and electrification, and price protected domestic production. Bullshit. We have enough socialized government meddling in the affairs of businesses as it is. What we need is domestic drilling, domestic refining, and domestic distribution of refined products. We also need nuclear power plants - about 75 of them. We need, until those nuke plants come online, about 100 clean-coal power plants. We also need a muzzle on the EPA, and someone to stand up to the entire government and reaffirm that anthropomorphic global warming is a myth that needs to be thoroughly discredited. If that takes breaking a few heads (Algore and company), so be it. We need to tell OPEC they can take their production control and insert it in the appropriate body orifice. |
| Posted by: Old Patriot 2008-10-24 15:28 |
| #7 This is a good time for the political leadership to affirm support for automobile downsizing and electrification, and price protected domestic production. |
| Posted by: ed 2008-10-24 13:01 |
| #6 One consequence of oil at 150$ is that it made virtually impossible to attack Iran since that would push oil to 300$. But with oil at 65 and falling... |
| Posted by: JFM 2008-10-24 12:25 |
| #5 It won't go below $65 for very long. It should stabilize at somewhere around $65 barring any major confrontation in the ME. |
| Posted by: crosspatch 2008-10-24 12:07 |
| #4 RH: You have no idea the amount of people who are hurting becouse of decisions like this. Countrys like Nicaragua, Central America, are seen there basic needs, like food, water and energy prices go in so high it is becaming imposible for them to purchase all of them. people are actually suffering. i cant even imagineg how it must be in countries from africa. Actually, I think it's energy prices that drive all the other prices. Stuff needs to be transported to where it's being used, and oil features in the transportation segment. My feeling is that oil demand will plunge by tens of millions of barrels, and there is nothing OPEC can do about that. |
| Posted by: Zhang Fei 2008-10-24 10:55 |
| #3 ...and I have co-workers that do not understand the relationship between supply and prices. Dhimmicrats, of course...... |
| Posted by: Deadeye Crotch7934 2008-10-24 10:47 |
| #2 You have no idea the amount of people who are hurting becouse of decisions like this. Countrys like Nicaragua, Central America, are seen there basic needs, like food, water and energy prices go in so high it is becaming imposible for them to purchase all of them. people are actually suffering. i cant even imagineg how it must be in countries from africa. |
| Posted by: Rodrigo Hernandez 2008-10-24 10:25 |
| #1 and no cheating. Right? Riiigghhtt? |
| Posted by: Frank G 2008-10-24 08:55 |