January 08, 2003

Opec jitters send oil prices tumbling

Oil prices have fallen sharply, amid increasing speculation that production cartel Opec is about to step up output.

In early trading in Singapore, the US grade of crude oil fell below the $31-per-barrel mark, having now lost more than $2 per barrel this week alone.

Opec has called an emergency meeting on Sunday to discuss the current market situation.

Many predict that the meeting will result in an overall production quota increase of 1.5 million to 2 million barrels per day, roughly 2.5% of daily global oil consumption.

Some Opec members, notably leading producer Saudi Arabia, have been pushing for an increase to compensate for the effects of a crippling oil strike in Venezuela, an Opec member and a major supplier to the US.

Don't you love those Saudis?!
Looks like they want once last blow-out before the jig is up for them and the rest of their Islamist pals...
We'll get to them in good time, but for the time being, I hope our U.S. oil companies will stockpile their oil while it's cheap(er), to carry us through the winter, the current shortage of Venezuelan oil and the upcoming unavailibility of Iraqi oil (Ahem. If you know what I mean...!)
It just looks like that OPEC arrangement isn't really working out, doesn't it?
These guys play with oil prices and supply levels like I do with my thermostat here at home: "It's too hot." Adjust. 5 minutes later:" I'm freezing!" And so on, ad infinitum.
Face it, House of Saud: if you didn't clean up cashwise after you jacked up the price permanently in the 1970's, it's not going to happen now!
And now that the GOP controls the House, Senate and Congress, could we please put ANWAR back on the agenda, President Bush?