Article

2007-01-17 Home Front Economy

Crude tumbles as Saudis play down output cut

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Posted by Steve White 2007-01-17 00:00|| || Front Page|| [3 views since 2007-05-07] Top

#1 I don't believe that the can cut production. I think they have come to rely so heavily on their oil money that they have forsaken every other industry in their countries. Except missiles and terror of course.

Posted by bigjim-ky 2007-01-17 07:52|| 2007-01-17 07:52|| Front Page Top

#2 Right, big-jim. A lot of oil producers are cash flow guys. They need the flow of money to keep themselves propped up, whatever the price of oil. They have little cash reserves.

Posted by Alaska Paul">Alaska Paul 2007-01-17 09:57|| 2007-01-17 09:57|| Front Page Top

#3 Except that oil has a very high price elasticity. Cut total production and the price of the remaining oil is greater than the total before.

Posted by ed 2007-01-17 10:08|| 2007-01-17 10:08|| Front Page Top

#4 "Iran desperately needs oil revenue. Chavez and Ahmadinejad are touring the world announcing anti-American initiatives and kicking out foreign investors because in the past these were good ways to rile up the oil markets.
The world is awash in oil right now. Saudi Arabia intends to collapse the price and cause a great deal of damage to their enemies in Iran, and they won't have to fire a shot. As a bonus, Chavez in Venezuela will also be gravely damaged. I believe this is all political strategy, and I believe the Bush Administration is coordinating it with the Saudis to eliminate two threats at once."
Lou Minatti

Posted by Deacon Blues 2007-01-17 16:25|| 2007-01-17 16:25|| Front Page Top

#5 This fall in oil prices may be related to events about to befall Iranian oil production in the very near future...

Posted by Anguper Hupomosing9418 2007-01-17 20:02|| 2007-01-17 20:02|| Front Page Top

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