Saudi slashes oil output, says market oversupplied

news.yahoo.com...

KUWAIT (Reuters) – Saudi Arabia's oil minister said on Sunday the kingdom had slashed output by 800,000 barrels per day in March due to oversupply, sending the strongest signal yet that OPEC will not act to quell soaring prices.

Oil Ministers from Kuwait and the United Arab Emirates echoed Saudi Arabia's Ali al-Naimi's concerns about oversupply and said rocketing crude prices were out of the hands of OPEC, which next meets in June.

I also read earlier today gas is atleast, if not more, than $4 a gallon. I think Hawaii was the most expensive with somewhere near $4.50 a gallon. I dont really know much about the oil business, but if Saudi Arabia cuts their production, I would think it would increase the price even more.

Also, what do they mean "oversupplied"? Wouldnt the countries that buy the oil just put the extra in storage or something? I dont really think oil has a short shelf-life?

Ladies and Gentlemen, the captain has turned on the seat belt sign, due to turblent weather. Please return to your seat, fasten you seat belt, and hold on for dear life!!!

Ohhhhhhhhhhh it is soooo engineered it is no longer funny!

reply to post by buni11687


It angers me how all the players in the game manipulate the prices of the market for this and that reason. There is always something new changing the supply and demand equilibrium.

Regrettably we are helpless to their grip they have on us. They know darned well what they are doing. It is a well played game of chess with these people in power.

The dollar is devaluating
If they (opec) don't drive the price up USD,
they can't meet their commitments to the same bankers that run the US, (and who hold their paper too..)...
and to the suppliers of credit in "other than dollars".
inflation as it were...
though due to the collapsing USD.
heheh
double jeapordy...
enjoy..


PS
note: everything coming into the US is going to go up too....

Originally posted by Corruption Exposed
Regrettably we are helpless to their grip they have on us.

no, we're not !!!
Just hire a couple engineers to make
a vehicle that don't run on gasoline.
Then the price of oil can go up to $500
a barrel and it wouldn't affect you.

Lord knows, I wish we had a choice
when you go to a car dealership to buy
a car that runs on something other than
gasoline. But you don't. They won't sell
u one. So we have to make our own.
Then tell Saudi and big oil to kiss our @r$e.
Break the slavery. We can and we will.

Vehicle Transportation without gasoline

reply to post by Danbones

the dollar is devaluating

I heard that the dollar hit one of its lowest points a few days ago. I dont really know the numbers involved but I think someone said it is now close to, if not already, hitting the free-fall mark.

Dollar hits fresh 16-month low; euro firmer

LONDON, United Kingdom - The dollar hit a fresh 16-month low against a basket of currencies on Thursday as expectations grew the Federal Reserve would keep monetary policy loose, while the euro held near highs, buoyed by favourable interest rate differentials.

The dollar index, which measures its strength against major currencies, fell to 74.676, bringing its losses this year to around 5 percent. The next target is seen at 74.17, the low hit on Nov. 26, 2009.

The dollar will continue to be undermined by the monetary policy stance of the Fed," said Adam Myers, senior currency analyst at Credit Agricole. "Even if there is a positive surprise from producer price data, we don't think the dollar will get much support from it."

Plus, the price of gold has hit one of its highest points to, while silver prices jumped

Gold hits record on weak dollar

SINGAPORE (Reuters) - Gold jumped to another record high on Friday after the dollar fell to its lowest since late 2009 against a basket of major currencies, taking silver to a 31-year high, while inflation pressures in China also helped lift bullion's appeal.

Spot gold was steady at $1,472.50 ounce by 9:24 a.m. British time, having hit a record high of $1,479.01 an ounce.
Gold is still far below its all-time inflation-adjusted high, estimated at more than $2,000 an ounce set in 1980 as a result of heightened geopolitical pressure and hyper inflation.

"We see gold peaking at $1,500 an ounce. We think there could be some more upside in gold in the short term, especially in this environment of high inflation and rising oil prices," said" Natalie Robertson, commodities strategist at ANZ.

Gold and silver prices are increasing, the value of the dollar is falling, rising oil prices, and now Saudi is cutting some of their supply. Plus, didnt food prices rise not too long ago to?

Edit - Heres another good thread about the US dollar being dumped by a few countries BRICS countries dump US dollar for credit and grants

reply to post by buni11687


Yep,seems like "The End is Nigh" Denying it is getting harder and harder

I, for one, am not complaining.

I don't drive and about a year ago I made an investment in resources such as gold, silver, soy and of course; oil and those investments has just sky-rocketed since then.

There is always something to gain as long as you can read the signs and make a move in time.
Just sayin'.

I believe that this is the end result of the Egypt/Obama/Saudi tiff. I'm surprised that this hasn't happened before now. The Saudis more than likely waited until they had their own internal strife more under control before they pulled the trigger. I expect that we'll see the price of oil go up another 10 dollars or so over the next 7 days - depending on exactly how much they cut production. Now, don't forget that the largest Saudi field is well over half exhausted so the the decrease isn't going to be that intrusive in the market, although the talking heads will start the yammering right about......now. And take a look at the grade of crude that comes from the Saudi fields - it ain't that sweet. Libya has a much sweeter grade of crude. And thus we come to the actual reason for this. This is probably a "get it done in Libya" because of course, Obama knows better than the Saudis do and this is a ransom with you and I in the middle after no doubt "someone" called the White House and was lectured to for their efforts by those that know so much more than anyone else, including the Saudis.

Stand by, of course for the usual suspects to start in. Here they are in order.

1. Why the heck aren't we using our own resources? Please can we drill for oil.
2. Oh, it would take at least 5 years to even start getting it in the market.
3. Americans need to be more responsible and trade in the gas guzzling cars and start taking the train.
4. Obviously we need to raise the taxes on the rich to pay for all of this.


All of these things are interrelated in the world of finance, energy and politics - everyone knows it. Now we have someone with no experience surrounded by 60's "the man is the pig" refugees which follows 16 years of drifting into the arms of 1984. Now we get to reap what we sow or as the man once said "America's Chickens have come home to roost".

If these clowns don't get their collective rears in gear, this will be that hyperinflation that we've all heard about.

5,000 servings and a few thousand rounds now that you ask- how about you?

What is really sad is that the American people are to lazy to stand up for there rights. We have all kinds of oil all over and all around us but we aren't drilling because people wont wright letters, emails or call there State Representatives and the White House and tell them get off your *** and do what ever it takes to open up drilling in and around America hell we have country's like china over here drilling around us and they don't even ask, they just do what they need to to get oil. What is wrong with us?! ok I got to say some of us at ATS already do this but all of us know someone that don't even want to know whats going on, go figure???

Originally posted by billxam
(snip)
Now, don't forget that the largest Saudi field is well over half exhausted so the the decrease isn't going to be that intrusive in the market, although the talking heads will start the yammering right about......now.
(snip)

Wait a Moment...they aren´t doing this because there is too much Oil on the Markets (even if speculations drive the Price up),thats a BS Excuse for the Sheeple...

They are slashing the Production because they can´t produce more...Which means the Oil Fields of Saudi-Arabia are drying up...fast

reply to post by boondock-saint


re: $500/barrel oil....

that's correct on the level of personal transportation... however, you're not accounting for the transportation of food and everything else on the planet ... these costs are always passed down to the consumer, am i wrong? even those who don't own cars, and live in cities feel the burden of rising oil costs.

reply to post by buni11687


The world is a flood in oil. The normal supply and demand forces are not working when it comes to such a commodity. Oil is being artificially bid up in commodities trading due to the lack of "position limits" being placed on trading, and the dollar is falling accordingly. Supply is up and demand is down, but oil is being bid up, and forcing the dollar down in value. Something has to make that insanity stop.

I just posted on a thread in this forum titled, "Energy Prices Drive Inflation." The OP lays some important facts out that should alarm anyone who is concerned about price manipulations, and how that can play out leading to an eventual depression.

Originally posted by boondock-saint

Originally posted by Corruption Exposed
Regrettably we are helpless to their grip they have on us.

no, we're not !!!
Just hire a couple engineers to make
a vehicle that don't run on gasoline.
Then the price of oil can go up to $500
a barrel and it wouldn't affect you.

Lord knows, I wish we had a choice
when you go to a car dealership to buy
a car that runs on something other than
gasoline. But you don't. They won't sell
u one. So we have to make our own.
Then tell Saudi and big oil to kiss our @r$e.
Break the slavery. We can and we will.

Vehicle Transportation without gasoline

100% true and people have done it already but we all have to wright letters, emails and calls to our Government and tell them we wont it now! Our Government officials will bend over backwards to keep there jobs, if people tell them there not going to vote for them in the next election they'll start making things happen. We all start doing this and take back our Country we can still save America but it's going to take most of us doing it together or were ******.
This guy went before our Congress with this water fueled cutting torch and now his company is making a water powered Hummer for the U.S. Military:
www.metacafe.com...

Originally posted by Danbones
The dollar is devaluating
If they (opec) don't drive the price up USD,
they can't meet their commitments to the same bankers that run the US, (and who hold their paper too..)...
and to the suppliers of credit in "other than dollars".
inflation as it were...
though due to the collapsing USD.
heheh
double jeapordy...
enjoy..

PS
note: everything coming into the US is going to go up too....

edit on 17-4-2011 by Danbones because: (no reason given)

edit on 17-4-2011 by Danbones because: PS etc etc

The dollar is being devalued because oil is being artificially bid up. Oil is contained within about everything bought and sold so the manipulated higher prices for oil and other energy/chemical products is then reflected in the price of everything causing inflation.

reply to post by FarBeyondDriven69


Sadly, I disagree, writing, calling, emailing, out-right protesting will not get the fat-cats in government, sucking on the tit of large companies, to do squat in regards to drilling on or around our own soil.

If you look at the past 12 years, they haven't listened to anything the people have asked, begged or pleaded for.

It's "not in their best interest" to do so.

Tougher stances and tougher actions need to be applied.

Originally posted by Cygnis
reply to post by FarBeyondDriven69

 

Sadly, I disagree, writing, calling, emailing, out-right protesting will not get the fat-cats in government, sucking on the tit of large companies, to do squat in regards to drilling on or around our own soil.

If you look at the past 12 years, they haven't listened to anything the people have asked, begged or pleaded for.

It's "not in their best interest" to do so.

Tougher stances and tougher actions need to be applied.

Ok show me proof, If what your saying is true show how most people voted for one thing and our Government told them no you can't have that one thing we will not give it to you the people that vote us in and pay us?

The Saudi's never miss a trick do they? It's no wonder they are rolling in money as they are quick to spot an opportunity to rip off the poor and use a crisis to their benefit. Stand by for the £2 a litre to appear on a petrol forecourt near you...
"Revolution any one!!?"

The price of oil per barrel has never been governed by supply and demand, it's governed by oil speculators on Wall Street.

This is an exact replay of the surging oil prices from 2008 (with a mini-repeat in 2009).

Saudis or Speculators? Oil-Price Finger-Pointing Heats Up

The Saudis are in the best position of anyone to gauge supply and demand, and they are saying the same things now that they said back then - "No customers were asking for more oil, so it clearly wasn’t a supply issue."

Big Oil stateside has always used the excuse that a refinery was shut down or a pipeline ruptured as a means to drive price up.

You're being played by Big Oil and Wall Street. This is not a question of increasing production, but of greedy speculators who manipulate prices to line their pockets.

What if? what if Saudi Arabia actually reached the peak, yet they try to cover it up? Anyway , slashing the production is not any good for the producers and this is why : high petrol price will trigger the development of alternatives to whatever uses petrol, doing us a service in long term by getting us out of oil dependency. Well, another thing i guess EVERYONE should watch on short therm - is how the petrol price will influence agriculture this year.Price of food could go insane next year. great moment to buy a pice of land you can work with bare hands..