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Saudi Arabia's oil minister said on Sunday the kingdom had slashed output by 800,000 barrels per day in March due to oversupply, sending the strongest signal yet that OPEC will not act to quell soaring prices.
Consumers have urged the exporters' group to pump more crude to put a cap on oil, which surged to more than $127 a barrel this month, its highest level in 2 1/2 years amid unrest in North Africa and the Middle East.
Oil ministers from Kuwait and the United Arab Emirates echoed Saudi Arabia's Ali al-Naimi's concerns about oversupply and said rocketing crude prices were out of the hands of OPEC, which next meets in June.
"The market is overbalanced ... Our production in February was 9.125 million barrels per day (bpd), in March it was 8.292 million bpd. In April we don't know yet, probably a little higher than March. The reason I gave you these numbers is to show you that the market is oversupplied," Naimi told reporters.
but this much is known: every $1 per barrel rise in oil decreases U.S. GDP by $100 billion per year and every 1 cent increase in gasoline decreases U.S. consumer disposable income by $600 million per year.
Originally posted by Melbourne_Militia
With the USA's and the Wests obvious thirst for oil to keep our economies going, (Libya for example), how long till we declare war - opps! I mean "Regime Change" on Saudi Arabia and take control of their oil aswell?
Surely its just a matter of time. Why wait? Lets take it all and be done with it!
Originally posted by proximo
reply to post by Vitchilo
No the Saudi's are not lying, there is more than enough supply.
The price is completely determined by the market, and the market is much more concerned with finding a hedge against currency devaluation than it is about supply and demand.
The price is going up due to dollar devaluation, and speculation that the dollar and other major currencies are going to be devalued further. The Saudi's are simply making a business decision.
If you want to be mad at someone for the rising cost of gas, get mad at the Fed, they are the ones causing it.
edit on 18-4-2011 by proximo because: (no reason given)
Originally posted by Jim Scott
Saudi's probably have a better idea of what's going on than we do. Prices are not simply a supply and demand problem, but are also linked to Wall St.
Originally posted by kro32
Never. Did you know that we actually founded Saudi Arabia. Well an oil company did really, I forget which one, but the U.S. basically made Saudi Arabia into the kingdom it is. We will never attack them.