OPEC Declines To Up Oil Output (AP) (1 Viewer)

primadox

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Cartel Cites Lagging U.S. Economy As Reason For Keeping Production At Same Level

OPEC will not put more oil on the global market, citing the stumbling U.S. economy as the reason for slackening demand in the near future.

The Organization of Petroleum Exporting Countries announced Wednesday that it decided not to pump more - or less - oil right now because crude supplies are plentiful and demand is expected to weaken in the second quarter.

OPEC spokesman Ibrahim Hussein said America's economic problems were a key factor in its decision to hold off on any action.

Saudi Arabia, the No. 1 producer and by far the most influential member of the Organization of Petroleum Exporting Countries, also said it saw no reason to change output targets - despite prices hovering near US$100 a barrel and a rebuke by U.S. President George W. Bush.

"Understand the consequences of high energy prices," Mr. Bush said Tuesday after meeting with King Abdullah II of Jordan at the White House.

"I think it's a mistake to have your biggest customers' economies slowing down as a result of higher energy prices," he added.

Mr. Bush's scolding underscored fears that high oil prices - which earlier this week hit a new inflation-adjusted record of nearly $US104 a barrel - are slowing global economic growth and risk nudging the shaky U.S. economy into recession.

Japan, the U.S. and other major industrialized nations have urged OPEC - which satisfies about 40 percent of the world's demand for crude - to bring more oil on the market as a means of pulling down prices.

But the group resisted, suggesting it would hold off to see what happens with supply and prices this spring.

:angryrazz: :angryrazz: :angryrazz:

http://www.cbsnews.com/stories/2008/03/05/business/main3907823.shtml?source=RSSattr=HOME_3907823
 

varanook

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I don't think they can produce a whole lot more imho as things stand now.
Unless Iraq is truly opened up for business and if Venezuela allows American companies with better drilling technology to do the work and not rape them high oil prices will remain for a while.

I want higher energy prices even though it will affect many Americans badly. We don't need foreign oil. We need mass transit and alternative energy.
 

FWtex

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I don't think they can produce a whole lot more imho as things stand now.
Unless Iraq is truly opened up for business and if Venezuela allows American companies with better drilling technology to do the work and not rape them high oil prices will remain for a while.

I want higher energy prices even though it will affect many Americans badly. We don't need foreign oil. We need mass transit and alternative energy.

Why do you want higher energy prices? If you feel because it will increase the technology for alternatives I can understand, however it depends on the alternative. I went to two grocery stores this weekend looking for corn on the cobb to throw in a shrimp boil, there was none in the store. Plenty of bags of kernel corn but no cobbs.

I have read some say the higher prices don't affect them because they don't drive much as if gas prices are in its own bubble.
 

CitySaint

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Wasn't there a rumor that we planned on upping Iraq's oil production to diminish the influence of opec? I don't know how thats possible, but I remember reading it somewhere.
 

varanook

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Wasn't there a rumor that we planned on upping Iraq's oil production to diminish the influence of opec? I don't know how thats possible, but I remember reading it somewhere.

Technically we could if the violence could be stopped. Iraq may have more untapped oil than Saudi from some reports I have seen.
 

varanook

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Why do you want higher energy prices? If you feel because it will increase the technology for alternatives I can understand, however it depends on the alternative. I went to two grocery stores this weekend looking for corn on the cobb to throw in a shrimp boil, there was none in the store. Plenty of bags of kernel corn but no cobbs.

I have read some say the higher prices don't affect them because they don't drive much as if gas prices are in its own bubble.

While I understand that high energy prices will affect many, many, many Americans badly, I think that it is necessary in order TO PUSH the American populace to vote more intelligently, live within our means and make our population honestly consider renewable alternative energy. Not to mention becoming more eco-friendly
Until something like 9/11 pushes us to do something than we will continue to make the same mistakes over and over again.
High energy prices will affect everything from basic needs to jobs to health care. This will push many us to think more about the current way we live.
Don't worry, I have plenty of improving to do myself too.
 

blackadder

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Wasn't there a rumor that we planned on upping Iraq's oil production to diminish the influence of opec? I don't know how thats possible, but I remember reading it somewhere.

It's believed to be one of the underlying rationale's for invading Iraq. De-nationalizing the Iraqi oil industry and having political leverage over a "democratic" (i.e. open to lobbyists and bribery) Iraq would allow influence on the production and distribution decisions.

We would seek to drive a wedge between Iraq and the rest of OPEC in order to undermine their cartel power.

Never mind all the corpses.
 

TDH

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Looks like the high prices is more a reflection of the weak dollar and increasing demand for oil from Asia.
 

Shawn

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Looks like the high prices is more a reflection of the weak dollar and increasing demand for oil from Asia.

Exactly. I guess there's no harm in asking them to up production, but in this case, I can't blame them for refusing.
 

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