Saudi slashes oil output, says market oversupplied

NickB79

(1000+ posts) Send PM | Profile | Ignore

Mon Apr-18-11 12:48 AM
Original message

Saudi slashes oil output, says market oversupplied

http://news.yahoo.com/s/nm/us_saudi_oil

"KUWAIT (Reuters) – Saudi Arabia's oil minister said on Sunday the kingdom had slashed output by 800,000 barrels per day in March due to oversupply, sending the strongest signal yet that OPEC will not act to quell soaring prices.

Consumers have urged the exporters' group to pump more crude to put a cap on oil, which surged to more than $127 a barrel this month, its highest level in 2 1/2 years amid unrest in North Africa and the Middle East.

Oil Ministers from Kuwait and the United Arab Emirates echoed Saudi Arabia's Ali al-Naimi's concerns about oversupply and said rocketing crude prices were out of the hands of OPEC, which next meets in June.

"The market is overbalanced ... Our production in February was 9.125 million barrels per day (bpd), in March it was 8.292 million bpd. In April we don't know yet, probably a little higher than March. The reason I gave you these numbers is to show you that the market is oversupplied," Naimi told reporters."

Saudi Arabia has peaked. There, I said it.

Printer Friendly | Permalink | | Top

DJ13

(1000+ posts) Send PM | Profile | Ignore

Mon Apr-18-11 12:55 AM
Response to Original message

1. They could be right about supply

It wasnt very many months back (just before the price mysteriously spiked) that it was reported supplies were at 20 year highs.

With increased prices and no disruptions in pumping or shipping I doubt the situation could have changed much since then.

Printer Friendly | Permalink | | Top

dkf

(1000+ posts) Send PM | Profile | Ignore

Mon Apr-18-11 01:01 AM
Response to Original message

2. Weren't they releasing a lower grade of crude to supposedly compensate for Libya?

I heard the market wasn't enthused with their offerings.

Printer Friendly | Permalink | | Top

hatrack

(1000+ posts) Send PM | Profile | Ignore

Mon Apr-18-11 06:52 AM
Response to Reply #2

3. I think I posted a Staniford thread re. how the didn't compensate for Libya . . .

I mean, they took up a little slack, but not much.

Printer Friendly | Permalink | | Top

Chris_Texas

(707 posts) Send PM | Profile | Ignore

Mon Apr-18-11 12:15 PM
Response to Original message

4. It's not about "peak" oil. It's about market speculation

Current oil prices, or rather the spike we have just seen, has NOTHINg to do with supply and demand. The spike was investor speculation.

Printer Friendly | Permalink | | Top

phantom power

(1000+ posts) Send PM | Profile | Ignore

Mon Apr-18-11 12:43 PM
Response to Original message

5. I sense a new E/E pool: How long can OPEC get away with saying "oversupplied!"

A 4-pack of Burton Baton says "Another 5 years"

Printer Friendly | Permalink | | Top

GliderGuider

(1000+ posts) Send PM | Profile | Ignore

Mon Apr-18-11 12:45 PM
Response to Original message

6. "As Saudi Arabia goes, so goes the world."

Anybody who wants to find out what this fuss is really about needs to pick up a copy of Matt Simmons' Peak Oil book "Twilight in the Desert". Yes, there's some geopolitical gaming going on, but the big story is that Saudi production is maxed out, and may be about to fall off a cliff in the next couple of years.

Here's a selection of large oil producers that are past peak production:

Country	        Peak            2008     % Off     Peak
                Prod.	        Prod.     Peak	   Year
------------------------------------------------------------------
United States	11297	        7337	   -35%	1970
Venezuela	3754	        2566	   -32%	1970
Libya	        3357	        1846       -45%	1970
Kuwait    	3339    	2784	   -17%	1972
Iran	        6060	        4325	   -29%	1974
Indonesia	1685	        1004	   -41%	1977
Iraq     	3489     	2423  	   -31%	1979
Other Europe
& Eurasia	762	         427	   -44%	1986
Russia          11484	        9886	   -14%	1987
Egypt	        941	         722	   -23%	1993
Syria    	596	         398	   -33%	1995
Argentina	890	         682	   -23%	1998
Colombia	838	         618	   -26%	1999
United Kingdom	2909	        1544	   -47%	1999
Australia	809	         556	   -31%	2000
Norway	        3418	        2455	   -28%	2001
Oman	        961	         728	   -24%	2001
Yemen	        457	         305	   -33%	2002
Mexico	        3824	        3157	   -17%	2004
Malaysia	793	         754	    -5%	2004
Nigeria	        2580	        2170	   -16%	2005

There is more than speculation driving oil prices: about half of the world's oil comes from countries whose production is on the back side of the curve.

Printer Friendly | Permalink | | Top

DU AdBot (1000+ posts)

Sun May 05th 2024, 07:42 PM
Response to Original message

Advertisements [?]

Top

Powered by DCForum+ Version 1.1 Copyright 1997-2002 DCScripts.com
Software has been extensively modified by the DU administrators

Important Notices: By participating on this discussion board, visitors agree to abide by the rules outlined on our Rules page. Messages posted on the Democratic Underground Discussion Forums are the opinions of the individuals who post them, and do not necessarily represent the opinions of Democratic Underground, LLC.