Given the fact that OPEC President considers 60 dollar a barrel oil "low", I hope we continue to look for ways to wean this country off of foreign oil. It bothers me to no end knowing that these countries are lining their pockets with American dollars and using our money to fund terrorism, etc. NEW YORK (Reuters) - Oil fell toward $61 on Tuesday on robust U.S. inventories ahead of the winter heating season, but producer group OPEC said the price slide from peaks this summer had gone far enough. U.S. crude fell 44 cents to $61.01 per barrel, reversing Monday's rebound from a six-month low below $60. London Brent slipped 68 cents to $60.12. Oil prices have had their steepest decline since the Gulf War in 1991, falling from July's peak of $78.40 a barrel, on easing Middle East tensions, ample fuel stocks and slowing U.S. economic growth. OPEC President Edmund Daukoru told Reuters on Tuesday the slide in prices was harming investment and that "something needs to be done." "We are already talking among ourselves in the OPEC fold. The price is very low, and it's not good for investors," he said after a meeting with diplomats in Abuja, the capital of Nigeria. The Organization of Petroleum Exporting Countries, which pumps a third of the world's oil, expects the global oil supply to be a "colossal" 1.8 million barrels per day above demand by the second quarter of next year, he added. "The general sentiment is that, if prices fall further, OPEC might decide to come in and cut its quota," said Andrew Harrington, an industry analyst at ANZ. "Given the language that some OPEC members are using, the market is interpreting that a price below $60 would be a trigger point for the group to act," he added. OPEC has avoided setting a target oil price to defend. Saudi Oil Minister Ali al-Naimi, who steers the policy of the world's biggest exporter, said last week, when prices were above $62 a barrel, that prices were "reasonable." Adding downward pressure to prices, BP said it was increasing production at its Prudhoe Bay oil field in Alaska and was on track to hit 400,000 barrels per day of production by the weekend -- just 50,000 bpd below full capacity. Output from the field, the largest in the United States, was cut sharply in early August after BP found a spill from a severely rusted line. U.S. oil inventories are already brimming. A Reuters poll ahead of Wednesday's U.S. government data found that U.S. stocks of distillates, which include heating fuel, were projected to rise by 2.3 million barrels last week. Inventories already stand at their highest level since January 1999. Crude oil supplies were forecast to decline by 1.7 million barrels last week, while gasoline stocks edged higher by 500,000 barrels, according to the survey
none of it ever lasts. the high prices don't last. the low prices don't last. it runs in cycles. we've had the doom and gloom crowd tell us it will all be gone in 30 years for the last 40 years. and then when we figure out how to more efficiently refine heavy crude (more on line with how we refine light sweet crude), the price will tumble even further. i wish we were investing heavily into alternative energy sources in the meantime.
Well I am saying all the stuff they are talking about in the article, OPEC cutting production and certain countries restricting their own production. I don't know where it's headed but we will see.
i know...i'm just kidding. the market overreacts to everything right now....so it wil overreact to this, too.
Mmmmm, why would the executive branch want to leave 1.3 billion uncollected? http://www.chron.com/disp/story.mpl/business/4217414.html . 26, 2006, 11:08PM Lawmakers demand royalties Key Republicans urge collection of back payments By DAVID IVANOVICH Copyright 2006 Houston Chronicle Washington Bureau WASHINGTON - Two key Republicans assailed the Interior Department on Tuesday over its decision not to try to recoup at least $1.3 billion in oil and natural gas royalties left unpaid after the government bungled offshore lease agreements. "That money belongs to the federal government and must be collected just as any other benefit unduly conferred upon a private citizen," Rep. Tom Davis, R-Va., and Rep. Darrell Issa, R-Calif., wrote in a blistering letter to Interior Secretary Dirk Kempthorne. The lawmakers insisted the Bush administration "provide us with an amended plan to retrieve this money." ..........
The low around my town (Jonesboro, AR) is about $2.05/gallon. Not helping you guys much but it is some information on the situation.
that was a government screw up where the companies were never charged. Not defending the gov't just clarification.
If that really happens to the degree that it has in the past (was '98/'99 the last time?) then it probably serves us right for not diversifying our economy. Into what I don't know; I don't see alot of movie studios, auto factories, stock exchanges or high-tech startups in the Fort Bend-Harris-Jasper County area.
this myth is so wrong and stupid. a) nigeria and venezuela are alone in this. the mid east giants dont want american consumers to get fed up. they dont mind 50 dollars a barrel. if anything it gives them more cards to hold b) 'these countries' aren't 'lining their pockets with american dollars'. for one the US needs oil. they have oil. likewise other countries need cars. the US has cars. other countries need mcdonalds and hollywood. the US has hollywood and mcdonalds. hi welcome to the global village of the 21st century. c) if by chance they happened to switch from dollars to euros we'd be so screwed d) pray tell how these countries use american dollars to fund terrorism. thats equivalent to them saying america uses them buying fords and chevys to fund kkk. which indirectly is accurate. e) you do realize libya, algeria, indonesia, nigeria and veneuzla are in OPEC right? that qatar, UAE and kuwait are in OPEC which are very pro US. that iraq is in OPEC which obviously is our colony currently.
All I'm saying is that is that it would be great if we could become less dependent on foreign oil. I'm sorry that it doesn't bother you that we are sending enormous amounts of money to countries that despise us. Countries that financially support groups like Hezbollah and Hamas. I understand that we need oil. I just wish we needed less of it.
