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Dig
09-12-2008, 01:51 AM
Saudi Arabia walked out on OPEC yesterday, saying it would not honor the cartel's production cut. It was tired of rants from Hugo Chavez of Venezuela and the well-dressed oil minister from Iran.

As the world's largest crude exporter, the kingdom in the desert took its ball and went home.

As the Saudis left the building, the message was shockingly clear. ?Saudi Arabia will meet the market?s demand,? a senior OPEC delegate told the New York Times. ?We will see what the market requires and we will not leave a customer without oil."

OPEC will still have lavish meetings and a nifty headquarters in Vienna, Austria, but the Saudis have made certain the the organization has lost its teeth. Even though the cartel argued that the sudden drop in crude was due to "oversupply", OPEC's most powerful member knows that the drop may only be temporary. Cold weather later this year could put pressure on prices. So could a decision by Russia that it wants to "punish" the U.S. and European Union for a time. That political battle is only at its beginning.

The downward pressure on oil got a second hand. Brazil has confirmed another huge oil deposit to add to one it discovered off-shore earlier this year. The first field uncovered by Petrobras has the promise of being one of the largest in the world. The breadth of that deposit has now expanded.

OPEC needs the Saudis to have any credibility in terms of pricing, supply, and the ongoing success of its bully pulpit. By failing to keep its most critical member, it forfeits its leverage.

OPEC has made no announcement about any possibility of dissolving, but the process is already over.

http://blogs.moneycentral.msn.com/topstocks/archive/2008/09/11/the-death-of-opec.aspx

grapemaster
09-12-2008, 01:56 AM
holy crapazoid...thats huge. my dad works for exxon, i'm sure he is going to go nuts over this...

ElMariachi
09-12-2008, 02:30 AM
LOL at Chavez. I hate that hypocritical piece of s%^t way too much to express in words.

SYRIANKID
09-12-2008, 02:56 AM
LOL at Chavez. I hate that hypocritical piece of s%^t way too much to express in words.

http://i24.photobucket.com/albums/c24/Assassin1_/ChavezChe-2.jpg

SYRIANKID
09-12-2008, 02:59 AM
http://cache.daylife.com/imageserve/02zKfq1dix1PS/610x.jpg

http://cache.daylife.com/imageserve/0fcS1Fl3PrfvY/610x.jpg

http://cache.daylife.com/imageserve/0d0D2WP0Lw9ko/610x.jpg


I think that's sign language for "EF JOO MENG"

martydaman
09-12-2008, 03:22 AM
Very interesting development. Oil is hovering at $100 a barrel, they said they have a price ceiling of $80 a barrel. It will be interesting to see if they alone can influence that market enough to make it happen.

Dig
09-12-2008, 03:23 AM
X3Kzbo7tNLg

STFU!

Por que no te callas?

Dig
09-12-2008, 03:27 AM
Very interesting development. Oil is hovering at $100 a barrel, they said they have a price ceiling of $80 a barrel. It will be interesting to see if they alone can influence that market enough to make it happen.

With the breakup, a pricing war may begin. The petroleum hungry people of the world stand to gain from this :).

ElMariachi
09-12-2008, 03:37 AM
Very interesting development. Oil is hovering at $100 a barrel, they said they have a price ceiling of $80 a barrel. It will be interesting to see if they alone can influence that market enough to make it happen.



Absolutely, without the Saudi's, there basically is no OPEC.


Saudi Arabian interests are often closely aligned and they moreso than the others, tend to see the big picture and not just the petty partisan bickering that other countries engage in.



This is huge news and I'm shocked that it isn't being reported more widely.

ElMariachi
09-12-2008, 03:38 AM
With the breakup, a pricing war may begin. The petroleum hungry people of the world stand to gain from this :).




Capitalism FTW????


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martydaman
09-12-2008, 03:43 AM
With the breakup, a pricing war may begin. The petroleum hungry people of the world stand to gain from this :).

There will be downward pressure in prices but I wouldn't go as as far as saying a pricing war will happen. No country can singlehandedly pump enough oil to satisfy even 20% of global demand. Therefore no country has enough power to singlehandedly dictate prices. Thats the reason why OPEC was formed.

My question is, did the Saudi's do this in disagreement of the proposed cuts or just use this as the opportunity to flex their muscles at Iran/Venezuela who seem to have been calling the shots as of late.

ElMariachi
09-12-2008, 03:46 AM
There will be downward pressure in prices but I wouldn't go as as far as saying a pricing war will happen. No country can singlehandedly pump enough oil to satisfy even 20% of global demand. Therefore no country has enough power to singlehandedly dictate prices. Thats the reason why OPEC was formed.

My question is, did the Saudi's do this in disagreement of the proposed cuts or just use this as the opportunity to flex their muscles at Iran/Venezuela who seem to have been calling the shots as of late.



Probably both. They reassert their dominance and put the two rag-tag orphans in their proper place, and they also had issues with the reduction in supply as well.

Dragger
09-12-2008, 06:28 AM
This is huge news and I'm shocked that it isn't being reported more widely.

I'm wondering this as well.

I've looked for it elsewhere but haven't seen it. Could it be a false story or just more speculation?

etech
09-12-2008, 07:10 AM
http://www.guardian.co.uk/business/feedarticle/7792726

" By Matthew Robinson
LONDON, Sept 12 (Reuters) - Mixed signals from Saudi Arabia have thrown into question whether the top oil exporter will throttle back output as agreed with other OPEC members this week.
Saudi Arabia, the most influential member of OPEC, signed up to a deal on Wednesday that would cut output by around half a million barrels per day (bpd) after oil prices fell from a peak above $147 a barrel in July to just above $100.
Any cut would be made primarily by Saudi Arabia, which produces most of the additional barrels above OPEC's agreed target.
Concern about the effect of high fuel prices on the economies of leading energy consumer the United States and of other big consumers could prevent the OPEC kingpin from enacting the cuts, however, analysts said.
"It always comes down to what the Saudis want to do, but the fact that they don't appear happy with the decision throws up a question mark (about OPEC cuts)," said Mike Wittner, energy analyst at Societe Generale.
..."


http://www.thisdayonline.com/nview.php?id=122226&printer_friendly=1
EU Condemns OPEC over Production Cut
•Oil price falls again •European Union pledges N15** to Nigeria
By Chika Amanze-Nwachuku in Lagos and Patrick Ugeh in Abuja with agency report, 09.11.2008

The European Union (EU) is rankled by Tuesday's announcement by Organi-sation of Petroleum Exporting Countries (OPEC) that it would cut oil production by 520,000 barrels per day, a development that initially led to a marginal rise in international prices of crude.
The EU Commissioner for Energy, Mr Andris Piebalgs, who made this known to energy correspondents in Abuja yesterday, said the action by OPEC, which supplies 40 per cent of global oil output, was not in the interest of EU.
However, Brent crude fell back below $100 a barrel yesterday as signs of weaker global oil demand have offset OPEC’s decision to reduce output levels, the BBC reported yesterday.
Piebalgs said the EU and OPEC substantially disagreed on that move.
“We believe that OPEC should not reduce or increase its production into the market,” he said. “Let market forces determine the price, as we still know that there is very high demand for oil by China and many emerging economies. This practice is what makes the world to look as if OPEC is responsible for high crude prices.”
He said the market was still very volatile as a result of many factors, “so OPEC announcing a cut in production is adding to the volatility and is bad for the market”.
He stated that too high price of crude and very low price of crude is bad for both the EU and OPEC.
“This is one area we disagree with OPEC,” he said, “but I have tremendous respect for the professionals in OPEC, especially for the analytical dept at understanding the fundamentals for oil future.”
Crude price shortly before the OPEC meeting slumped by $3.08 to $103.26 a barrel after peaking at $149 in April. But the announcement yesterday led to a marginal rise of about a dollar in crude futures supply.
.."

Dig
09-12-2008, 12:07 PM
This is more important than most of the stupid election drama bull**** on the first page.

Bump.

paolo59
09-12-2008, 01:13 PM
Saudi Arabia is not in the least interested in being drawn into the oil as a weapon mentality of either Iran or Venezuela. The Saudi government is interested in market stability. OPEC is a non-entity without Saudi Arabia. The present governments of Venezuela and Iran represent a literal threat to the Saudis. Both governments, under the guise of popular consent, manipulate, control, and dictate policy. The Saudi government does that from a position of family control. It is a royal house, "popularism" and street movements are not in its' best interests.

JuanDenver
09-12-2008, 01:15 PM
wait wut?

JuanDenver
09-12-2008, 01:17 PM
I fail to believe this.

ElMariachi
09-12-2008, 01:21 PM
I fail to believe this.



Its true, it is just that the media is to busy covering the pregnancy of Sarah Palin's daughter and commenting on lipstick to mention this issue.




PS-Oil just dropped below $100 p/barrel for the first time since April.

JuanDenver
09-12-2008, 01:23 PM
http://i24.photobucket.com/albums/c24/Assassin1_/ChavezChe-2.jpg

wow strong penn

Is he officially a commie yet?

JuanDenver
09-12-2008, 01:24 PM
PS-Oil just dropped below $100 p/barrel for the first time since April.

Look for the economy to get a nice shot in the arm.

pantera02018
09-12-2008, 01:24 PM
thats pretty huge id say.

Dragger
09-12-2008, 01:25 PM
Looks like the Saudis are getting worried about all this world wide talk of reducing oil dependence and are wanting to take measures to keep this from happening, they have the most to lose in that case. Without their oil dollars they have nothing but sand and sheep.

Suppliers and consumers need to find an agreeable price to stabilize on, the consumers obviously feel $100-$150 a barrel is too high, OPEC feels $100-$150 is just fine, but they don't understand that $100-$150 a barrel is going to further development for alternatives reducing demand; in the end reducing their profit.

HitItHard
09-12-2008, 01:25 PM
whats this mean for us?

much higher prices? if so maybe the conspiracy theories were true

JuanDenver
09-12-2008, 01:27 PM
Looks like the Saudis are getting worried about all this world wide talk of reducing oil dependence and are wanting to take measures to keep this from happening, they have the most to lose in that case. Without their oil dollars they have nothing but sand and sheep.

Suppliers and consumers need to find an agreeable price to stabilize on, the consumers obviously feel $100-$150 a barrel is too high, OPEC feels $100-$150 is just fine, but they don't understand that $100-$150 a barrel is going to further development for alternatives reducing demand; in the end reducing their profit.

They can do what they want and its probably true.

Its really up to us to stick to the plan of energy indi.

Dragger
09-12-2008, 01:28 PM
Its true, it is just that the media is to busy covering the pregnancy of Sarah Palin's daughter and commenting on lipstick to mention this issue.




PS-Oil just dropped below $100 p/barrel for the first time since April.

The media is a bunch of dumb****ing greedy profitwhores.

JuanDenver
09-12-2008, 01:29 PM
5 stars. Would read again and hit it twice.

Dragger
09-12-2008, 01:31 PM
whats this mean for us?

much higher prices? if so maybe the conspiracy theories were true

I've been hearing it could separate them, causing competition and possibly lower prices. But the market is so volatile only time will tell.

It would also keep Saudi from reducing supply. I fail to see how this would increase prices seeing how we are being "ran through" by hurricanes yet the price is going back to dropping from this news.

So far everything I've seen points to lower prices.

Dragger
09-12-2008, 01:35 PM
They can do what they want and its probably true.

Its really up to us to stick to the plan of energy indi.

That is true, we need to reduce foreign demand(can't eliminate it) or history will repeat itself eventually down the road again, as it has before when we never learned our lesson and once again been at their mercy with our own President personally begging for more oil.

HitItHard
09-12-2008, 01:35 PM
I've been hearing it could separate them, causing competition and possibly lower prices. But the market is so volatile only time will tell.

It would also keep Saudi from reducing supply. I fail to see how this would increase prices seeing how we are being "ran through" by hurricanes yet the price is going back to dropping from this news.

So far everything I've seen points to lower prices.

good

JuanDenver
09-12-2008, 01:35 PM
If theres anyone on the two tickets who will make sure we still will drill for our own oil its palin.

EDC
09-12-2008, 06:47 PM
Why did this happen?

US- "Hey. Keep oil prices low. K?"

Saudis- "mmm...no"

US- "ok. have fun defending yourself. you should be able to afford an awesome army. oh wait, you are deathly afraid of your own people and don't want them to have guns"

Saudis- "****. fine"

Dragger
09-13-2008, 06:01 AM
So what's the deal with Saudi leaving OPEC so far? Has it been Confirmed, Plausible, or Busted?