Qatari Oil Minister - OPEC Currently Pumping Enough - No Production Increases Needed - Rigzone

The Organization of Petroleum Exporting Countries is producing enough crude oil to keep global markets well supplied, and doesn't need to pump any more oil crude oil even if prices top $100 a barrel, Qatar's Oil Minister Abdullah bin Hamad al-Attiyah said Sunday.

"We're adding 500,000 barrels per day as we said we'd do from Nov. 1. We're keeping markets well supplied," al-Attiyah told Dow Jones Newswires ahead of a big global energy meeting here this week in the Italian capital. "The $100 level is numerically important but it's not going to move us to do more just because of that," he said.

"The problem is speculators. They're adding at least $10 a barrel to the price of oil, in my estimate," al-Attiyah said.

Al-Attiyah said he doesn't believe OPEC, whose production meets about 40% of the 86 million barrels consumed every day, will take up any substantial discussion on its output policy later this week when the leaders of OPEC's 12 member countries meet in Saudi Arabia.

EDIT

http://www.rigzone.com/news/article.asp?a_id=52748

Cue Jon Lovitz: "Yeah, that's the ticket..."

Thanks, OPEC, for those reliable reports as usual. :eyes:

I haven't noticed any lines at the gas stations or any closed stations.

The minister was far too kind when he said the traders/speculators were only adding $10/bbl to the price.

Oh wait, they ALL have gas? As much as I want to buy? But it's priced high because of a shortage? No, that's not at all suspicious.

I've said it before and I'll say it again: there is NO oil shortage going on. There is only PRICE FIXING.

for flat supply + increasing demand to have an effect on price. In fact, the U.S. may be one of the last places to suffer actual shortages if we're talking about resource allocation. That doesn't mean that prices won't skyrocket once demand overtakes supply. I'm sure you realize that.

Secondly, our supply problems are only just beginning. It's very possible in the coming years that you'll start seeing the "Out of Gas" signs you're looking for. Until then, the oil we do pull out of the ground is likely to be more and more difficult and costly to extract and refine, which obviously affects prices as well. And as we pump for oil more aggressively, with new techniques, etc., we're likely to see diminishing returns on the back end, hastening depletion. You think $100 is bad? Well the fun's just started!

Would it make sense if gas stayed at $1/gal while world demand skyrocketed, but then suddenly just disappeared from the pumps altogether?

The ones who get priced out of the market first. America will be part of the next round, or perhaps the one after that.

The day when OPEC says that they are going to be dropping production. Because the markets are well supplied, even at $150/barrel.

That'll be some quality entertainment, seeing them try to float that balloon.
:popcorn:

That was my thought, as well. "When OPEC decides to DROP production".

The oil producing countries WANT high prices. They've stated that repeatedly. Hugo Chavez and Mahmoud Ahmadinejad have stated that "$100.00 per barrel is reasonable". As well as the other countries.

It's a case of a Dealer & a Junkie. Who's calling the shots?:smoke:

since the peak production of crude at 32 million barrels per day in the middle 2006.




Here is the link to an article analyzing world oil production
http://europe.theoildrum.com/node/2864

So far, they've gotten away (?) with the Baghdad-Bob Gambit. "We're holding exports flat because we want to! There are no shortages! OPEC is victorious!"

It's going to be fun seeing them try to play this game when their actual exports have to drop. I think everybody is agreeing to suspend their disbelief about their 'flat exports are good' story. I doubt anybody will be able to keep that charade going on declining exports, but I assume they'll give it the old college try.

When we go into global recession, maybe not so good. But perhaps they will have built up enough $$$ to survive with only a few new palaces...


FWTW, the news that China wants a huge increase in Saudi oil to feed new refineries in China is the big, and very scary, news as far as oil price and availability is concerned.

were down cause OPEC was gonna open up them spigots boy-howdy quick.

Guess the Hummer purchase is off again.