posted on Jul, 19 2007 @ 05:39 PM
Originally posted by grover
MAY? I always understood that it did. Why the hedging of bets now with a may?
I'm not suggesting there won't be buyers. I'm saying that by the time Iraq has achieved it's goal of 4MM b/d, global demand could offset the
supply increase...to a degree that would limit the affect on OPEC revenue balances. This is what OPEC does. It's a cartel that controls almost 50% of
world oil production, and it manages that production to insure, safeguard, and maximize the revenues of member states. Increased production/supply =
Currently, with prices spiking, the IEA is leaning on OPEC to increase production. OPEC hasn't complied. They point the finger at US refinery issues,
geopolitical instability and record spec buying in the markets.
Another issue with regard to oil/OPEC/supply is the anemic US Dollar. The Buck is bouncing off historical lows with a poor prognosis. Since oil sales
are denominated in US Dollars, this has a negative impact on the revenues, and purchasing power of OPEC producers. This in my opinion, is why OPEC
production is currently at a 3yr low...and prices at record highs.
Like I said earlier, I see these reports about untapped 'esoteric' oil reserves as an attempt to buffer escalating prices. Iraq has a lot of
fish-to-fry before they'll be in a position to start proving-up another 100BB barrels of oil. Just reaching their stated goal of doubling current
production would be a good start. Until the country stabilizes, and agreements on oil/petroleum laws are effected...they're years away from even