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Here we go again: OPEC Cutting oil Production by 2.2M


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I wander how High the Gas Prices will go now?

 

 

 

ORAN, Algeria – OPEC says it is cutting 2.2 million barrels a day from its output — the largest ever at one time — to stem crude prices that have plummeted over 70 percent from summer highs of nearly $150.

 

An OPEC statement says its latest announcements means it is taking 4.2 million barrels a day off the market compared to September levels. The 4.2 million figure includes more than 500,000 barrels of overproduction OPEC said in September it would eliminate and a formal cut of 1.5 million barrels a day that it agreed on last month.

 

That amounts to a new reduction of 2.2 million barrels announced Wednesday.

 

In practice, "it's 2.2" said OPEC President Chakib Khelil.

 

Members among the 13-nation organization were officially producing a daily 29.045 million barrels in September.

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You got to feel sorry for them they are simply not making enough profit. Guess I better go gas up .

 

 

Yea.....I heard that comment this morning. By Spring we'll probably

be back where we was this past summer. :cry:

OPEC should shove it up their :censored:

 

Thanks...I feel better now.

 

IS

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OPEC Makes Record Oil Cut to Rescue Prices; Oil Still Tumbles- AP

 

OPEC on Wednesday agreed to slash a record 2.2 million barrels from its daily production as of Jan. 1, while the bloc's outsiders Russia and Azerbaijan announced their own cutbacks of hundreds of thousands of barrels from the market. Oil prices tumbled close to four-year lows after the announcement..... :shrug:

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I wander how High the Gas Prices will go now?

 

 

 

ORAN, Algeria – OPEC says it is cutting 2.2 million barrels a day from its output — the largest ever at one time — to stem crude prices that have plummeted over 70 percent from summer highs of nearly $150.

 

An OPEC statement says its latest announcements means it is taking 4.2 million barrels a day off the market compared to September levels. The 4.2 million figure includes more than 500,000 barrels of overproduction OPEC said in September it would eliminate and a formal cut of 1.5 million barrels a day that it agreed on last month.

 

That amounts to a new reduction of 2.2 million barrels announced Wednesday.

 

In practice, "it's 2.2" said OPEC President Chakib Khelil.

 

Members among the 13-nation organization were officially producing a daily 29.045 million barrels in September.

 

Turn those frowns upside down:

 

Oil Slides 8% to Below $40 as Size of OPEC Cut Disappoints- Reuters

Oil prices dropped to their lowest in more than four years on Wednesday after OPEC announced a record supply cut that dealers said may fail to fully offset slumping world energy demand. U.S. crude oil prices fell $3.54 to settle at $40.06 a barrel after dipping below $40 for first time since July 2004. London Brent fell $1.12 to $45.53.

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If you want a bright side - OPEC cheats! When prices are falling, they meet and SAY they will cut their output but most of the members don't. They got used to the cash flow when they were selling their oil at $140 and their cash flow is now down 70% so they cheat. The key will be the Saudis. They will have to make the biggest cut if OPEC really does cut output. Time will tell if they are serious.

 

In the USA, our gasoline consumption was down 2.7% from a year ago. This compares to last week when consumption was down 3.9% from the same time one year ago. This may mean that the low prices are starting to spur demand here but it is still very early to tell.

 

Finally, small changes in supply and demand make for big swings in most commodity markets that allow speculation. Remember, our demand is only down less than 5% and yet the commodity price is down 70% so don't discount the effect that a small cut in production might cause.

 

If you don't want to worry if the proposed OPEC cuts will cause prices to rise, support increased exploration in the USA. It is going to be extremely difficult to get Obama's administration to support this, however. His appointees in Energy, EPA, & Interior all favor high energy prices to make you stop creating CO2. The high energy prices will also encourage and protect alternative energy projects that often are not cost effective in their initial stages. The only thing I see that might make them change their mind is that high prices will hurt a very stressed economy right now.

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Speculators who bought futures during the run-up are still unwinding them (and losing their shirts), driving the price down. This will continue for the rest of the year until next July. This futures selling effect will be smaller and smaller, and at some point, supply - demand pricing will return and oil will stabilize at slightly higher level.

 

I can't emphasize enough however, that now is the time to open up more areas for exploration. It will be too late when the next supply squeeze and speculation frenzy hits. The topic is quickly sinking below the radar and the recent appointments to Obama's cabinet will not likely bring it back to the surface.

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yes we need the exploration bad .you think 147. was bad just wait .200. a barrel.will be starring us right in the face.all that will do is turn our economy upside down .

 

 

Exxon Mobile just anounced two weeks ago they will be drilling new wells off of Nova Scotia.

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