Saudi King: 'We will pump more oil'

Saudi King: 'We will pump more oil'

www.independent.co.uk

Next month, the Saudis will be pumping an extra half-a-million barrels of oil a day compared to last month, bringing total Saudi production to 9.7 million barrels a day, their highest ever level. But the world's biggest oil exporters are coupling the increase with an appeal to western Europe to cut fuel taxes to lower the price of petrol to consumers.

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[edit on 16-6-2008 by Andrew E. Wiggin]

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[edit on 16/6/2008 by Mirthful Me]

Like the title says. Its about time!
What impact, if any, do you think this may have on the overall cost at the pump, though?

www.independent.co.uk
(visit the link for the full news article)

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[edit on 16/6/2008 by Mirthful Me]

reply to post by Andrew E. Wiggin


I seriously doubt another 500k barrels will affect the price at all. It isn't about supply at this point, so I don't see this slowing down the speculators.

reply to post by Karlhungis


I guess i shoulda been more specific

The part that says the Saudi King implores the west to lower taxes on gasoline imports so that it lowers the cost to consumers

im sure they have a hidden agenda, however, if they didnt, we never would have had these kind of problems. (IMO)

reply to post by Andrew E. Wiggin


I don't think the western governments give two hoots what the Saudi king wants them to do with their taxes. I agree that the taxes suck, especially in Europe, but right now the biggest problem is that a barrel of oil is selling for $135/barrel. Even if they lower the taxes, we will still be paying far more at the pump than we were a few years ago. Until the price per barrel comes down, we won't get much relief at the pump.

wouldnt an increase in barrel production naturally lower the cost per barrel?

I mean, theoretically, that is.

What impact, if any, do you think this may have on the overall cost at the pump, though?

It will only have as much impact as the market manipulators want it to have. If they want us to believe it's a supply and demand issue, expect to see the prices come down about $20 a barrel. They'll still be making a fortune on what were record prices just a few months ago and it'll be back to $135 a barrel soon enough.

We might be lucky to see gas drop 4 or 5 cents a gallon.

reply to post by Andrew E. Wiggin


If it was a supply driven price it would.

Even if it was, they already produce about 83 million barres per day. So to add on an additional 500k or .006% wouldn't significantly reduce the cost for the consumer.

Originally posted by KarlhungisI don't think the western governments give two hoots what the Saudi king wants them to do with their taxes.

I don't think the Saudi King gives a hoot if the western governments lower taxes either. Bush was over there asking him to increase production in order to lower the prices, and the King initially declined. Finally he did and he is saying "if that is not enough then the western governments can lower their taxes too".

The agenda being simply to put the pressure on the governments, and get them to stop pestering the Saudis.

[edit on 16-6-2008 by Sonya610]

I was led to believe the Saudi's are concerned about how this will eventually lead to alternative sources and big losses for them.

Although, this may not happen as soon as many would like, the reality of this switch coming is greater.

The one thing I've been reading is how places such as Nigeria could be losing their ability to supply oil. So, when one country increases, another decreases their output.

Even if this didn't happen, the time of the increase is probably too short and these speculators know it. It sounds like another gimmic of a tax free holiday. (Psyche) I was led to believe a holiday is typically one day.

Originally posted by Andrew E. Wiggin
The part that says the Saudi King implores the west to lower taxes on gasoline imports so that it lowers the cost to consumers

Funny how they are imploring the west to lower taxes so it lowers the cost to consumers but would they (Saudi) dare sell it at a lower rate to begin with?

BTW, we just gave them nuclear technology. I wonder if that has anything to do with it?

The Saud's could be looking to sell more oil at the inflated rate so as to prosper asap before more companies jump on the band wagon to fuel cars with water only.

Exxon was/is dumping all their gas stations in the US... think 1200.. not sure..

Just last week on Friday it was report two Japanese individuals made a car that runs on water.. this after two Australians modified their gas guzzlers to use water with some hard work and a few hundred dollars.

I think I saw an article this morning about a kit available to convert some cars.

Soon.. it will be about whose willing to take on the new technology or stay with the old. Not only will we be comparing the cost in regards to fuel.. but performance will also play a huge part... time will tell.

Originally posted by Griff

Originally posted by Andrew E. Wiggin
The part that says the Saudi King implores the west to lower taxes on gasoline imports so that it lowers the cost to consumers

Funny how they are imploring the west to lower taxes so it lowers the cost to consumers but would they (Saudi) dare sell it at a lower rate to begin with?

BTW, we just gave them nuclear technology. I wonder if that has anything to do with it?

I was thinking the same thing myself....funny how all of a sudden they are willing to produce more oil when we offer them nuclear technology.It is almost as if they where blackmailing us using oil as leverage.It makes sense since that is there only exported product they can actually make money on.

reply to post by Andrew E. Wiggin


You mean like how the mass unchecked production of our dollars has lowered the worth of the same?

Actually no. we will just have to keep paying more dollars per barrel/gallon or whatever have you.

If we as a people struck deals independent of oil companies and government...by eliminating the idiot middlemen, oil would be a lot cheaper. How cheap is open to debate, but a lot cheaper.

Pump all you want, where do you want to refine it?............02c

reply to post by Pinktip


Ive said it once and Ill say it again in this thread it has nothing to do with supply and everything to do with the dollar. Sorry to burst your bubble. As long as our government continues to devalue the dollar the way they do this id what we are going to deal with.

Originally posted by mybigunit
reply to post by Pinktip

 

Ive said it once and Ill say it again in this thread it has nothing to do with supply and everything to do with the dollar. Sorry to burst your bubble. As long as our government continues to devalue the dollar the way they do this id what we are going to deal with.

actually the dollar fell today about .6% (which is a decent amount) and oil fell a lil bit as well. Soooo the speculators not only jump on the dollar trends (which would have meant UP today) but on supply-demand comments as well. It is merely the thought that other speculators may sell on this news which effects prices.

prices from 60 in jan 07 to 135 now is obviously alot more than supply/demand concerns , it is a falling dollar being hedged by assets that will outperform the devaluation taking place, combined with being the asset bullseye (along with food) that has the growth potential that greedy investors have gotten used to, also major INVESTMENT banks watching their balance sheet's getting hammered are investing a ton of money they make (buy borrowing short and lending long) into oil futures to increase the time it takes to attempt to recapitalize themselves.

Yeah he felt bad about the riots in Italy and the fact that people are starving so he upped production, He cant live with him self.