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View Full Version : Saudi calls for talks; oil experts see no change


Achilles
06-09-2008, 04:37 PM
Full Story (http://news.yahoo.com/s/ap/20080609/ap_on_bi_ge/saudi_oil)

Intro:
RIYADH, Saudi Arabia - Saudi Arabia will call for a summit between oil producing countries and consumer states to discuss soaring energy prices, Information and Culture Minister Iyad Madani said Monday.

The kingdom will also work with OPEC to "guarantee the availability of oil supplies now and in the future," the minister said following the weekly Cabinet meeting, held in the seaport city of Jiddah.

Madani said that the kingdom has informed "all oil companies it deals with as well as countries that consume oil that (the kingdom) is ready to provide them with any additional oil they need." I heard this morning that the concensus amongst the OPEC nations is that there is sufficient supply to meet current demand (seasonal fluctuations nonwithstanding), therefore the current insanity is being driven by speculation and the weakening dollar.

It will be interesting to see what happens if/when the price of oil is unhitched from the dollar and switched a different currency.

Litofsky
06-09-2008, 04:47 PM
Fear is incredibly effective, especially in an undereducated society. ;) So long as people are willing to pay the prices to get around, oil prices will continue to rise.

Of course, only time will tell.

The Source
06-09-2008, 04:48 PM
Lol... I wonder if they are thinking, "Hey! Don't start using alternative fuels. We have plenty for everyone. You can allways count on your oil providers."
The kingdom will also work with OPEC to "guarantee the availability of oil supplies now and in the future,"...
Yep. They want us to keep paying into their pockets.

"It's not a situation that's going to move the market today," said Phil Flynn at Alaron Trading Corp. in Chicago, suggesting that there it might have a more long term effect. "I do think a conference is warranted, we need to sit down."
No. We need to find ways to get off of oil and gas, and we cannot do it by giving oil and gas companies more cash.

"It's not anywhere near as significant as if they called an emergency OPEC meeting," he said. "It seems to me to be more political than anything ... They're reaching their worry threshold." Lol... I agree with that statement. If we actually develop new forms of fuels, they will end up loosing mad amounts of money. Having the price of oil and gas go up, makes everyone race for a bike or alternative fueled car.

Thanks for the article man!

mimartin
06-09-2008, 04:57 PM
Madani said that the kingdom has informed "all oil companies it deals with as well as countries that consume oil that (the kingdom) is ready to provide them with any additional oil they need." I hope this helps with speculators, but considering the recent comments leaked to the press about Bush asking King Abdullah to increase oil production and then the Saudi’s refusal, this could just add to uncertainty felt by the speculators. Uncertainty is never good for oil prices.

The Source
06-09-2008, 05:02 PM
I hope this helps with speculators, but considering the recent comments leaked to the press about Bush asking King Abdullah to increase oil production and then the Saudiís refusal, this could just add to uncertainty felt by the speculators. Uncertainty is never good for oil prices.
Very Damn True Man!

If they truely wanted to cool the oil market down, they would have called an emergancy meeting for this week. Like the article said. Lol...

Relenzo2
06-09-2008, 05:09 PM
Aye. One guy who worked in a comany that developed powerful adware viruses said "Find the measure of injustice that the people will submit to without revolt, and you have found the exact injustice they will endure..." or something like that. Of course, maybe he was quoting too. There will be no magical "Oil supplies in the future". We need to develop alternative fuels, and the quicker we start getting into gear the less painful the transition will be. Oil companies and the U.S. right now are unfortunately kinda like *thinks* an addicted druggie and his dealer. They can charge whatever the crap they want, but the solution is not lower prices, but to quit the drug.

mur'phon
06-09-2008, 05:10 PM
Eh, of course they are blaming speculants, keeps the heat of them to increase production.

If we actually develop new forms of fuels, they will end up loosing mad amounts of money.

Yes, but as more opec members put more of their oil money in shares/bonds etc, the loss of money isn't going to be that bad for them as they make more money than they can sensibily spend.

Jae Onasi
06-09-2008, 11:38 PM
The press release today sounds remarkably like the press release they issued a few weeks ago, and looks like it will probably be about as effective in calming the markets.