OPEC cuts to oil production to start in Nov.

[Bud Bud]

Here it is, OPEC's answer to the falling world price of oil, just in time for Christmas. They have decided to cut prodution by another 200,000 more than they originally thought and with another possible cut of 500,000 in Dec.

23/10/2006 - The oil cartel OPEC has decided to cut production by 1.2 million barrels a day, the United Arab Emirates' oil minister said on Friday.

Mohammed bin Dhaen al-Hamili made the announcement at a news conference after OPEC's oil ministers held an emergency meeting in the capital Qatar.

The output cut is aimed at boosting prices, which have declined more than 25 per cent since mid-July, and is to take effect from November 1.

He did not specify the amount of production that each member country would cut, but said the reductions will affect all countries.

The cuts will come from actual production levels, he said.

The cuts are the first time OPEC has trimmed its output since December 2004, when oil traded slightly above US$40 a barrel and the cartel lowered its official production quota by one million barrels a day.

However, many observers expect further production cuts in the near future.

Michael Fitzpatrick, a New York-based oil broker at Fimat USA, doubted whether the cut would have the desired effect.

"I'm not sure that a million barrels is going to be enough" of a cut to keep oil prices from further declines, he said.

Qatar's Energy Minister Abdullah bin Hamid Al-Attiyah said the cartel's members are not excluding making further cuts.

Asked whether another cut could come in December, he said, "Everything is possible. We are working with the market and it is an open market."

Al-Hamili echoed the possibility, saying "We will monitor the market and review the situation and take a decision accordingly."

OPEC is scheduled to meet again in December in Nigeria and many analysts believe a further cut could be implemented then. "They better act quickly and decisively," Fitzpatrick said.

The organisation's president, Edmund Daukoru of Nigeria, said talk of the possible need of a further 500,000-barrel cut was "in line with my own thinking," Dow Jones Newswires reported.

OPEC price hawks such as Nigeria and Venezuela have strongly advocated a cartel-wide production cut since the start of the month.

But without public support from Saudi Arabia, the market took with a grain of salt the likelihood of any cuts.

Source: AAP NewsWire

[Full Noise]

Money hungry bastards. How many billions do you need? I would laugh if the price doesn’t fall. OPEC truly are the scum of the earth.

[XRQTR]

Unfortunately they have the world by the short and curlies and they know it, besides I don't think the Sheik has all the different colors in the Lamborghini range yet, that plus his 50th wife just asked for another palace, or was that his first wife just asked for her 50th palace, I forget.

So you see they are doing it tough too. :

[MO]

I should be doing it so tough.

[Full Noise]

Originally Posted by Full Noise

Money hungry bastards. How many billions do you need? I would laugh if the price doesn’t fall. OPEC truly are the scum of the earth.

I’ve just noticed a typo in my previous post and I'm unable to edit it.
I meant to say that I would laugh if the price doesn’t rise.

Cheers

[cupic]

Originally Posted by Full Noise

Money hungry bastards. How many billions do you need? I would laugh if the price doesn’t fall. OPEC truly are the scum of the earth.

Ive reiceived email of past oil sheiks baron and the billions of dollars they get from oil,put into building Sydney size city in the desert and ordering car encrusted with diamonds or Audi built in pure silver car bodies.Once they where simple people but shove 25 trillion barrels of oil it does do strange thing to simple minded people

[Bud Bud]

Originally Posted by cupic

oil sheiks baron and the billions of dollars they get from oil, ..............ordering car encrusted with diamonds or Audi built in pure silver car bodies.

cupic, thats both amazing and disgusting!

The price of oil is definitely falling fast at the moment. Seems they strangled us too much for too long and have created themselves a mini glut.

When I was in the US exactly the same time as this last year, I paid $2.75 US a gallon. I noticed on the NBC today show this morning that it has fallen dramatically since then and they predict that the price will fall even more, they showed a quick snap shot from in front of a BP somewhere and the bill board read $1.77 US a gallon.

[ltd]

Price fixing scum. I recall 3 years ago when they said oil would ideally be priced at between 25 and 30 US dollars a barrel.

Just as this gouging goes on with these oil producing nations, watch in a decade or so when oil dependancy has wained how quickly these same bastards plead and beg for aid. Screw em all I reckon. I just hope a petrol head is running the USA and Australia at the time, as we seem to be the likely targets for funds to prop up dictatorships um, despotic governments.

[ED Classic]

The sooner the US can harvest their oil rock in Colorado at an affordable price the better off we will be. All in all they have twice the amount there than Saudi Arabia has in all its reserves. John Howard knew about it when he drew up the free trade agreement with George. Watch the Opec prices then.

[4.9 EF Futura]

Originally Posted by ED Classic

The sooner the US can harvest their oil rock in Colorado at an affordable price the better off we will be. All in all they have twice the amount there than Saudi Arabia has in all its reserves. John Howard knew about it when he drew up the free trade agreement with George. Watch the Opec prices then.

Shale is a joke!

[ltd]

Amen to that. Bring on the shale oil.

[Smoked]

Oh crap, I only made $30,000,000,000 last year. Ill lower the amount of production so I can increase that income. :

Bloody theiving bast**ds.

[brodfloyd]

just think about these main opec countries. (arab states, south america)

POVERTY amoungst the overwhelming majority of the population, poor records with human rights, womens rights, religious and political freedoms. some these ppl is to work and get paid generally a very low wage by world standards event though they work for such a profitable industry. and the others rely on the generosity of organisations like the red cross and the red crescent (funded by western countries mainly).

the rich make up 1%, have all the power and all the money in these countries (and yet spend it on stupidity like some have detailed above) and are mostly corrupt.

opec cut production to raise the price of oil, and use excuses like,
if its too cheap, they dont make any money and then the ppl from their countries suffer. when the only ppl to see money from it are the ppl who own the oil fields, the corrupt government officials and dont even get me started on the oil companies.

Oil is the only viable export they have yet the rich few who control it refuse to share it, or spend it on developing their own countries and helping their own poor. And as they either are or control the government, it is not taxed at a level (like australia) where the money can be used to help everyone.

All they do is spend stupidly on crap to glorify themselves and accumilate money, so that when we run out of oil in 100 years they will be fine. but, the ppl who relied on the oil industry and the associated jobs in other industries it generates will have nothing. None of the money has been spent to generate other industries, there is still large poverty, poor education and corrupt politicians and then who knows what happen??? civil war, terrorism.

I know its great to think they will get whats coming to them when we run out of oil, or we can get it from shail, or that someone invents a technology for alternative fuel that puts them out of business, but the world will still end up farked, cos the poor uneducated masses living in these places are crud and all they get told the west is to blame.

So we still get screwed for oil prices, and ppl in poor countries hate us and always will, no matter what we do!! damn i hate opec.

:

[chevypower]

I used to agree with these views, but now i think higher prices of oil are a good thing, it encourages us to look for new ways of fueling our cars and using less of puluting fuel, even if somebody is making a killing out of it at the moment, i still think it's a good thing... hopefully they cut oil production right back and force us to use bio-fuels and electric vehicles - surely having stable world climate, and less polution will be better than cheap fossil fuel.

[4.9 EF Futura]

Pop history quiz.

Anyone know much about the beginnings of OPEC? Why they came into being and why they behave the way they do?

Very long winded story, involves a few wars and is quite dull.

Basically - this is what the west used to do to arab/other opec nations. We would charge horrific prices for wheat etc. in the name of protecting our industries and our workers. We would buy their oil from them, refine it and sell it back at exorbitant prices.

OPEC basically became a bunch of a**holes to get back at the west, to stop us from exploiting their nations and their resources.

Kind of ironic when you look over posts in this thread!

Besides, cut production and the stuff might last a bit longer.

Relax

[XR6TickfordBoy]

I just think of the stories my parents told of when they were young petrol was like 18cents a litre and they could drive 350ci powered cars wherever they liked without much regard to fuel consumption, im well aware of inflation but anything over 99cents per litre is criminal! Ive read articles that say Australia has enough oil reserves to provide our country with petrol for the next 50-70 years! of course the Aussie Government will keep this in their back pocket til the rest of the world runs out and then they will just export it and make trillions!!!

[jimmy_c]

there is plenty of oil and even the head mobil./exxon has stated this. People are scare mongering to drive the price up. Or in this case so the dune coons can buy a 24ct gold audi or something

[4.9 EF Futura]

Originally Posted by jimmy_c

there is plenty of oil and even the head mobil./exxon has stated this. People are scare mongering to drive the price up. Or in this case so the dune coons can buy a 24ct gold audi or something

Because one of the heads of big oil say it's going to be ok... dont know if it can be read down as law...

There is of course "plenty" left. That's not the issue. The problem is that we need something in the vicinity of 100 million barrels of the stuff each and every day. That's over 35 billion barrels per year.

The overall amount left is not the issue. It depends on whether the supply (i.e. the number of barrels you pump a day) can keep up with demand, which is growing very quick... despite the fact we arent spending a lot of money in finding more.

Hubbert's theory of peak oil holds true for any given reserve of oil - this has been proven. It therefore makes sense - and is something that i believe - that the theory of peak oil can be applied to the overall "system" of oil wells around the globe.

Chevron has publicly announced its support for the theory of peak oil.

[jimmy_c]

yeah thats true too.