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Freiherr
Join Date: Dec 2003
Location: New Orleans
Posts: 1,884
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Saudis quit OPEC
Hugo Chavez: Suck this!
The death of OPEC Posted Sep 11 2008, 07:01 AM by Douglas McIntyre Saudi Arabia walked out on OPEC yesterday. It said it would not honor the cartel's production cut. It was tired of rants from Hugo Chavez of Venezuela and the well-dressed oil minister from Iran. As the world's largest crude exporter, the kingdom in the desert took its ball and went home. As the Saudis left the building the message was shockingly clear. According to The New York Times, “Saudi Arabia will meet the market’s demand,” a senior OPEC delegate said. “We will see what the market requires and we will not leave a customer without oil." OPEC will still have lavish meetings and a nifty headquarters in Vienna, Austria, but the Saudis have made certain the the organization has lost its teeth. Even though the cartel argued that the sudden drop in crude as due to "over-supply", OPEC's most powerful member knows that the drop may only be temporary. Cold weather later this year could put pressure on prices. So could a decision by Russia that it wants to "punish" the US and EU for a time. That political battle is only at its beginning. The downward pressure on oil got a second hand. Brazil has confirmed another huge oil deposit to add to one it discovered off-shore earlier this year. The first field uncovered by Petrobras has the promise of being one of the largest in the world. That breadth of that deposit has now expanded. OPEC needs that Saudis to have any credibility in terms of pricing, supply, and the ongoing success of its bully pulpit. By failing to keep its most critical member it forfeits its leverage. OPEC has made no announcement to the effect that it is dissolving, but the process is already over. http://blogs.moneycentral.msn.com/topstocks/archive/2008/09/11/the-death-of-opec.aspx
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09-11-2008, 10:34 AM
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Unfair and Unbalanced
Join Date: Jul 2004
Location: From the misty mountains to the bayou country
Posts: 9,711
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Let's see if I can type this before nimrod Jim gets to it. I put it up & somebody had already put it up before me. This is great!
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"SARAH'S INSIDE Obama's head!!!! He doesn't know whether to defacate or wind his watch!!!!" ~ Dennis Miller! |
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09-11-2008, 10:36 AM
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Freiherr
Join Date: Dec 2003
Location: New Orleans
Posts: 1,884
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Ooops, a repeat. I'd lock the thread if I could.
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09-11-2008, 10:38 AM
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Bandwidth AbUser
Join Date: Nov 2001
Location: SoCal
Posts: 29,522
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Nimrod reporting for duty. Red, there are two threads on this already.
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Jim R. |
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09-11-2008, 10:39 AM
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Freiherr
Join Date: Dec 2003
Location: New Orleans
Posts: 1,884
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Quote:
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09-11-2008, 10:41 AM
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Bandwidth AbUser
Join Date: Nov 2001
Location: SoCal
Posts: 29,522
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No worries. Sheet happens. Look at Mule.
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Jim R. |
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09-11-2008, 10:42 AM
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Unfair and Unbalanced
Join Date: Jul 2004
Location: From the misty mountains to the bayou country
Posts: 9,711
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Tell him again Jim. You da man!
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"SARAH'S INSIDE Obama's head!!!! He doesn't know whether to defacate or wind his watch!!!!" ~ Dennis Miller! |
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09-11-2008, 10:43 AM
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