Talk about music to my ears! Guess who is complaining the most? Venezuela and Iran. They are in a panic due to the falling oil price. This is a very effective financial weapon to use against these crooked regimes. Looks like the house of Saud is telling its weaker members KMAGYOYO! OPEC Rift Deepens
Venezuela, which has been one of the most outspoken proponents of a production cut by the Organization of the Petroleum Exporting Countries, called over the weekend for an emergency meeting of the group of some of the world’s biggest oil producers to respond to falling prices. But Kuwait said Sunday that OPEC was unlikely to move to rein in output. Saudi Arabia, meanwhile, appeared to deepen its recent move to defend its own market share at the expense of other members by aggressively courting customers in Europe. Over the weekend, traders said Saudi Arabia was now asking for stronger commitments from some of its buyers in Europe, a move that would lock in those customers, including any new ones it would gain with recent price reductions. Also on Sunday, Iraq’s State Oil Marketing Company cut the price of Basrah Light crude in November for Asian and European buyers by 65 cents to a discount of $2.50 a barrel below the Oman/Dubai benchmark for Asian customers and $4.75 below the Brent benchmark for European customers, according to official selling prices published by the company. Each member has a different tolerance for lower prices. Kuwait, the United Arab Emirates and Saudi Arabia generally don’t need prices quite as high as other membersincluding Iran and Venezuelato keep their budgets in the black. Last week, OPEC’s average basket of crude fell to its lowest level since December 2010, while the Brent international benchmark fell near a four-year low at one point before bouncing back to close Friday at $90.21 a barrel. This month, state-owned Saudi Aramco stunned the rest of OPEC by slashing its November prices to defend its market share in Asia’s growing market. At the same time, Saudi Arabia said it increased its output in September.