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Only question is.. who gets the 200,000 barrels

select-fireselect-fire Member Posts: 69,539 ✭✭✭✭
edited June 2008 in General Discussion
each Day?


AP
UN chief: Saudi to boost oil production
Sunday June 15, 7:09 pm ET
UN chief says Saudi Arabia plans to increase oil production by 200,000 barrels a day

RIYADH, Saudi Arabia (AP) -- Saudi Arabia plans to increase its oil production by 200,000 barrels a day next month, the kingdom's oil minister told U.N. chief Ban Ki-moon on Sunday, according to Ban's spokesman.


The U.N. secretary-general met with Oil Minister Ali al-Naimi in the port city of Jiddah during a one-day trip to the world's largest oil producer.

Farhan Haq, a spokesman who is traveling with Ban, said in an e-mail that the U.N. chief said al-Naimi told him Saudi Arabia would increase oil production by 200,000 barrels a day from June to July. In May, the kingdom increased its production by 300,000.

By July, production should be at 9.7 million barrels a day, Haq said.

Ban also said Saudi Arabia understands that the current price of oil, which topped $139 per barrel earlier this month, is not normal, according to the official Saudi Press Agency.

"The king believes that the current oil prices are abnormally high, and he is ready to restore prices to their appropriate levels," SPA quoted Ban as telling reporters in Jiddah. The report carried by SPA was in Arabic, and it did not say what language Ban spoke in.

Saudi Arabia is concerned that sustained high oil prices will eventually slacken the world's appetite for oil, affecting the kingdom in the long run.

The 200,000-barrel-a-day boost is not insignificant -- it will raise Saudi Arabia's daily production by about 2 percent. But to a market that has been sending oil prices soaring to record heights due in part to strong global demand, the move might be seen as marginal.

The oil market largely ignored Saudi Arabia's 300,000-barrel-a-day output increase last month.

In electronic trading on the New York Mercantile Exchange late Sunday, crude oil futures were down 54 cents at $134.32 a barrel.

The kingdom has called for a meeting of oil producing and consuming countries on June 22 in Jiddah to discuss ways of dealing with soaring energy prices.

The New York Times reported on Saturday, citing unnamed analysts and oil traders briefed by Saudi officials, that a production increase of about 500,000 barrels per day was to be announced following the meeting.

On Saturday, al-Naim's adviser told The Associated Press that the minister would address the production increase reports the next day. But on Sunday, the adviser, Ibrahim al-Muhanna, said there was no meeting to address the reports scheduled.

Further attempts to reach al-Muhanna by phone later Sunday went unanswered.

Saudi Arabia, the world's largest oil producer, is concerned that sustained high oil prices will eventually slacken the world's appetite for oil, affecting the kingdom in the long run.

Crude prices have reached record highs, surpassing $139 per barrel on June 6 after surging nearly $11 in the biggest single-day price leap ever.

The prices had receded by Friday, with the benchmark light, sweet crude for July delivery falling $1.88 to settle at $134.86 on the New York Mercantile Exchange. In London, July Brent crude lost $1.84 to settle at $134.25 on the ICE Futures exchange.

The current president of the Organization of Petroleum Exporting Countries, Chakib Khelil, has said that the cartel will make no new decision on production levels until its Sept. 9 meeting in Vienna. OPEC ministers often follow the lead of the Saudis when discussing whether to increase production to take the pressure off rising prices.

Comments

  • TooBigTooBig Member Posts: 28,559 ✭✭✭
    edited November -1
    Who ever pays the most and the speculators [:(!][V][xx(][:(]
  • dan kellydan kelly Member Posts: 9,799
    edited November -1
    i dont think it will make much difference how much comes out of the ground. the cheaper it is the more countries like china will buy and stockpile.
  • dheffleydheffley Member Posts: 25,000
    edited November -1
    quote:Originally posted by select-fire
    Only question is.. who gets the 200,000 barrels

    Higest bidder, and most likely, that will be China.
  • DocDoc Member Posts: 13,898 ✭✭✭
    edited November -1
    1. Didn't the Saudis say the other day that they were already at 100% production capacity? Where did they pull this additional 200,000 barrels a day from?

    2. The fact that they are confident that they can control oil prices with their production output confirms that we are at their mercy and need to develop our own oil reserves and get off the foreign oil supply.

    Drill here... drill now.
    ....................................................................................................
    Too old to live...too young to die...
  • dheffleydheffley Member Posts: 25,000
    edited November -1
    quote:Originally posted by SaxonPig
    Drill here... drill now.


    AMEN!
  • brickmaster1248brickmaster1248 Member Posts: 3,344
    edited November -1
    quote:Originally posted by dheffley
    quote:Originally posted by SaxonPig
    Drill here... drill now.


    AMEN!


    +1
  • savage170savage170 Member Posts: 37,572 ✭✭✭✭
    edited November -1
    quote:Originally posted by brickmaster1248
    quote:Originally posted by dheffley
    quote:Originally posted by SaxonPig
    Drill here... drill now.


    AMEN!


    +1


    +2
  • FrancFFrancF Member Posts: 35,279 ✭✭✭
    edited November -1
    quote:Originally posted by savage170
    quote:Originally posted by brickmaster1248
    quote:Originally posted by dheffley
    quote:Originally posted by SaxonPig
    Drill here... drill now.


    AMEN!


    +1


    +2


    Sorry I can't agree thats the answer, (I would like it to be), the U.S has not built a refinery since 1976 and the EPA has the multi-state formulations. We are years behind growth, In other words,<figuratively> We could have ten trillion barrels of oil per day but when your pumping it thou a syringe system thats 35+ years old that is not up to par with state by state formulations you and I get what we pay for, Nothing .

    In other words, 2008 EPA oil refinery demands feeding on a 1976 system-[;)]
  • kristovkristov Member Posts: 6,633
    edited November -1
    Even if we (the USA) got every single drop that is only about 1% of our daily oil consumption, which is hardly enough to drop crude prices and will have no measureable impact at the pump.
  • DocDoc Member Posts: 13,898 ✭✭✭
    edited November -1
    Drill here... drill now also implies building new refineries.
    ....................................................................................................
    Too old to live...too young to die...
  • bpostbpost Member Posts: 32,669 ✭✭✭✭
    edited November -1
    quote:Originally posted by kristov
    Even if we (the USA) got every single drop that is only about 1% of our daily oil consumption, which is hardly enough to drop crude prices and will have no measureable impact at the pump.


    True; so to deeply cut consumption, ban women drivers... [}:)]
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