OPEC cuttin oil production by 2.2 mill barrels/day

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http://www.msnbc.msn.com/id/28274997

ORAN, Algeria - OPEC says it is cutting 2.2 million barrels a day from its output — the largest ever at one time — to stem crude prices that have plummeted over 70 percent from summer highs of nearly $150.

An OPEC statement said Wednesday its latest announcements means it is taking 4.2 million barrels a day off the market compared to September levels. The 4.2 million figure includes more than 500,000 barrels of overproduction OPEC said in September it would eliminate and a formal cut of 1.5 million barrels a day that it agreed on last month.

That amounts to a new reduction of 2.2 million barrels announced Wednesday.

In practice, "it's 2.2" said OPEC President Chakib Khelil.

Members among the 13-nation organization were officially producing a daily 29.045 million barrels in September.

Saudi oil minister Ali Naimi had first mentioned a 2 million figure in Oran on Tuesday, the eve of the oil ministers' decision making meeting.

Oil producers fear a drawn-out lull in prices could hurt investment and lay the groundwork for another sharp price spike when the world's economy rebounds.

OPEC gave ministers ammunition to justify cuts in its latest monthly market report, released Tuesday. The bloc predicted demand for its crude oil will have fallen by 700,000 barrels per day this year, and will drop by at least twice that amount in 2009 as the worsening global economy "is expected to have a strong impact on oil demand."

Ahead of the decision, other OPEC ministers also expressed sentiment for a large cut to shock the market and put a floor under prices.

Shokri Ghanem, Libya's delegate to OPEC, said that "we should make a substantial cut" and that 2 million barrels was "a very good number."

Venezuela's energy minister, Rafael Ramirez, used similar language: "What is important is that there should be a consensus to cut production. A significant cut," he said. Ramirez added that Venezuela, a traditional price hawk, favors a cut of between 1 million to 2 million barrels per day.

Iranian Petroleum Minister Gholamhossein Nozari did not give a number, but said that Iran would support a reduction of 2 million barrels per day.

Still, while eager to push prices higher, OPEC must weigh production cuts against the risk of driving the economies of its top customers deeper into recession.
 
Quote:
Still, while eager to push prices higher, OPEC must weigh production cuts against the risk of driving the economies of its top customers deeper into recession.

Yep. That will still keep prices low.
 
Originally Posted By: Tempest
Quote:
Still, while eager to push prices higher, OPEC must weigh production cuts against the risk of driving the economies of its top customers deeper into recession.

Yep. That will still keep prices low.


I love it how they base there prices NOT ON THERE COST TO PRODUCE THE GAS
BUT
ON WHAT THE HIGHEST POINT THEY CAN CHARGE US BEFORE WE TUMBLE
 
So let's control what we can control, which is how much oil we import.

Drill more today, use less today, and start work today on a program to stop using oil as the primary energy source.

As others have said, most if not all in OPEC are not our friends, so why continue doing what we've done before, and being held hostage to their manipulation of the supply.

It won't happen overnight, but I have to believe we can figure out how to keep most if not all of our lifestyle AND stop using so much oil.
 
Originally Posted By: rg200amp
Originally Posted By: Tempest
Quote:
Still, while eager to push prices higher, OPEC must weigh production cuts against the risk of driving the economies of its top customers deeper into recession.

Yep. That will still keep prices low.


I love it how they base there prices NOT ON THERE COST TO PRODUCE THE GAS
BUT
ON WHAT THE HIGHEST POINT THEY CAN CHARGE US BEFORE WE TUMBLE

This is no different than it is for ANY business. Oil producers just happen to opperate at the top of the macro scale.
 
If one person controlled the price of oil, that one person could take over the entire business world. Raise the price, then sell your stock investments before the world goes into recession. Buy stocks again when they reach a low, then lower the price of oil. Repeat.
 
Originally Posted By: oilyriser
If one person controlled the price of oil, that one person could take over the entire business world. Raise the price, then sell your stock investments before the world goes into recession. Buy stocks again when they reach a low, then lower the price of oil. Repeat.


..but ultimately to what gain? If that were the case, then that one person would be determining the level of his own status in how he either enabled or dis-enabled others. He/she would have reach, hopefully sensibly, the maximum yield for everyone, since it maximized yield for himself/themselves. Now this may not work this way in practice ..since warped characters aren't restricted from the acquisition of power.
 
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Goldfinger??
 
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