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Arabia
Saudis vow to avoid oil shortages
2004-04-03
Saudi-controlled Arabia has vowed to ensure world oil supplies will remain plentiful, in light of Opec's decision to cut output. "We will not allow shortages in the market," said Prince Bandar bin Sultan, the Saudi Ambassador to the US, after meeting President George W Bush.
What friends.
Opec reduced production - by one million barrels per day - in order to provoke an orderly easing in prices. The oil cartel reckons that prices are heading back to $25-28 per barrel, well within its target range. At present, oil prices are still well above that target: US crude oil is currently trading around $35 per barrel. But Opec is convinced that the current highs are speculative, and not indicative of any genuine strength in the market. Saudi Foreign Minister Prince Saud al-Faisal says there is a fundamental oversupply of oil, something that would eventually take its toll in the form of a sharp fall in prices. Stocks of oil in the US, the world's biggest importer of crude, are at a 19-month high. US investors have stockpiled oil in response to the current tense security situation, but most analysts expect the buying to come to a halt soon.
Which is why the price is so high. No, wait ...
Posted by:Steve White

#7  
It's all about the november elections. The sods are feeling the heat and they believe if the american consumer feels the pain we will dump Bush.

Posted by: Dan   2004-04-03 1:02:07 PM  

#6  Oil rich nations will complain aboutthe US interferring in their internal politics. Yet isn't this exactly what they are attempting to do here. If energy costs sky rocket this summer and early fall the US and Eu economies will be stung bad. To a large degree people vote their pocket books. If the economy goes in the toilet then Kery is almost guaranteed to win come November. And don't think that OPEC and others who do not like regime change in the Middle East haven't thought about this
Posted by: Cheddarhead   2004-04-03 11:48:03 AM  

#5  Raptor - This disingenuous quote is about softening the fall in prices for OPEC. In other words, they are looking out for themselves and protecting their economies from a sudden shock when (lol!) the prices fall. You didn't really think they gave a rat's ass about anyone else did ya? Lol! Nah, I didn't think so!

The absurdity of the current price is due to stockpiling (Can you say 'hoarding' and 'self-fulfilling prophecy'? Lol!) because there is certainly no shortage currently.

With record prices, the opposite is now true -- there is rampant overproduction by all non-OPEC producers and over-quota shenanigans by their OPEC brothers - the poor Saudis (lol!) are trying to get the greediest people on the planet to show some restraint, heh. They wear the mantle of World Oil Price Cop - and often have to underproduce (cutting their own income) to stabilize prices cuz other OPEC whores cheat like mad. Hysterically funny, actually. Lesse, what are some of those choice mustache curses? Too bad OPEC meetings aren't public... Lol!

The price should be some where between $25-$30 bbl now. Market "fears" are usually self-fulfilling prophecies. Sound familiar?

I'd really like to know how much he pays for his Wayfarers. I can hear the collusion between his "gopher" and the Herrod's sales clerk now,
Clerk: "Think he'll go for £100?"
Gopher: "Sure. Make it £325 - £100 each for you, me, and your manager - and the £25 actual price for the store."

Blame the price of oil on his sunglasses. Heh. :^)
Posted by: .com   2004-04-03 10:35:59 AM  

#4  There may be some odd logic to this if, in fact, the $35/brl price is due to shorts and if there really is a plentiful supply. The SA want the price to fall slowly and avoid panicing the speculators into a huge drop in price.
Posted by: Shipman   2004-04-03 10:34:45 AM  

#3  "Opec reduced production - by one million barrels per day - in order to provoke an orderly easing in prices"

You know,my being just dumb-ass white boy,I just can't figure this one out.
How is reducing supply going to cause an easing of prices?

Doesn't the Laws of Supply and Demand come into play here?
Posted by: Raptor   2004-04-03 8:46:19 AM  

#2  They're dumb. If I were them, I would build and fill huge storage tanks for crude and then wait to gouge the world when Chavez reaches the final impact from his current death spiral.
Posted by: Super Hose   2004-04-03 2:54:24 AM  

#1  Apparently Prince Bandar got hauled into the Oval Office for an unscheduled "discussion" of world energy policy. I wish I coulda been a fly on that wall...
Posted by: Seafarious   2004-04-03 12:53:46 AM  

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