Saudi Arabia waging war on the west... cutting oil output amid fast rising oil prices

Saudis Slash Oil Output; Say Market Oversupplied

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.

Are they lying about the over supply? If the markets were really over supplied, the price of oil would crash.

The SUPPLY of oil... which the Saudis have CUT...by 9% since March... even if they did that, the price of oil stayed basically the same during March... or even went down. So I guess the markets were really full of oil in March... and only now, since early April, as the markets are emptied of the oversupply they've built up, now the prices are starting to go up again. OPEC won't raise their production till at least June... so expect the price of oil to keep going up till at least then...

If there's over supply, what's driving the prices higher?

Is it the US dollar crashing? US dollar went down 9% since mid-January while gas prices went up between 22%-26%. So the US dollar crashing has a responsibility of 40% of the rise in term of crude oil and 35% in the case of Brent oil.

Is it the fault of speculators? Speculators are responsible for 59%-65% of the rise in gas prices since it's the difference between the US dollar crashing and the price of oil rising.

Speculators, the arabs and the FED are waging war on the US economy. For every 1$ rise of the price of oil, it costs 100 billion $ to the US GDP annualized.

Oil price approaches the danger zone

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.

So they say that the Iraq war was costly.. Worst analysts say the Iraq war will cost America 2+ trillion... Since the ``Libyan revolution`` started, the price of brent oil has risen 20$ and 24$ for the crude... or 2.4 trillion $ in cost to GDP.

Of course the price of oil since the Iraq war...makes the Iraq war even costlier. From 27$ a barrel in 2003 to a high of 148$ in 2008...

Thanks much, CIA... you're destroying the economy.

(sorry if this thread doesn't really make any sense, I think I'm too tired)

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.

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 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!

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.

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.

reply to post by Vitchilo


Let me gaze into my crystal ball. What I see is a uprising starting slow and then gaining strength in Saudi Arabia. They had better be very careful who they piss of in the world we live in today if they think Russia or China is going to come and save them I have some bad news for them.



I am not saying I agree with this but it is the truth it seems. You would think the TPTB in Saudi Arabia would have a little more common sense. Maybe they already know their time is up and are trying to cash in quick.

A 9% drop in the dollar does not equate to a 9% rise in gas.

Each foreign company involved has to recoup that first 9%. From the use of the terminal to the tanker to the Suez channel fees. Right on down the line.

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)

Here is someone paying attention. You’re absolutely right. The decline of the dollar results in higher prices because the dollar is worth less. If the oil supply is greater than demand then the only thing that would explain its rise is people buying into oil to get out of the dollar. It’s getting interesting. The BRIC losing the dollar & the University of Texas trading the dollar for a billion in gold. Just a couple of the bad signs developing lately for the dollar.

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.

Yes i agree but the gambling chips from walls street are becoming less exchangeable by the day and the wrinting is already on the wall for the saudia royals and they will more than likly be given sancuary in iseral at the zionist side.

Americans should have stood up in 2001 and they didn't so now the nation is dieing of cancer and now its turning into the blame game, bit too late if you ask me.

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.

Yea I heard somewhere too that a lot of these ME countries were just sand and camels before the oil companies moved in?

Yes, they were, and a lot of barefoot people wandering around on top of the sand too.....
People whos lives have, for the most part been impoverished, first by mother earth, and then by those who are capable of controlling the resources they walk around on.
The people themselves are just like us, they get used, abused, and cast aside even more roughly than the goverment is allowed to do here to our own people.
What wouldnt they give for an acre of fertile ground, and the water to grow things upon it?
Ive read that all the people in the world wouldnt fill the Huston area standing side by side.....and that if they gave everyone a house and lot, we wouldnt hardly fill the state of Texas.....
What is the problem then?
Much of what our picture of the world around us is false information,Fed to us by those who are in control and wish to stay that way.
It is imperative that those who can be reached with the truth be told the truth......Everyone should be allowd to decide to choose life or death instead of leaving it in the hands of those who care not one whit about the world or the people in it.....
Goverments, and Corporations, must be constrained to act in the best interests of humanity no matter what the cost or nation or project.
First and foremost it must be proven that proposed technology will not pose a signifigant hazaerd to life on the planet, before it is allowed to be implemented on a large scale,
Those industries which supply the basic needs of the people, should be nationalised and regulated in such a way that they profit the people who pay for them, and not the private bankrolls of the uber rich.
All telephone, electricity, water,roads and bridges etc, are property of the people who use them.
There is no way that private persons should be allowd to own public utilities ever.
It is obvious that the goverments have sold out to big business who provide the election funding for politicians who toe their lines.
Corporate funding for political purposes should be abolished immediately and punished severely in future!
Democracy should never ever be put in a position where it can be subverted by other than the true will of its people.....period.
The speculators who make immense profits by driving up the prices of the stuff of life, food, oil,lumber, you name i theres a market dedicated to speculation on that commodity....
\The usurpers, middle men, who have nothing but money invested in the back end or front end of a market, have no right to expect to profit from the labour of others merely because they have money....
This amounts to merely a legalised form of hoarding, and extortion.
Thereare whole segments of our economy that are created specifically for the rich elite to cut in on the profits of the peoples labour and blood and tears.
This is tyranny at its most insideous form, as it is looked upon as just business....which it is definately not!
Any criminal organisation seeks to set itself up in the same position as these unscrupulous, but legalised criminals.They merely do it in the realm of whats not permitted instead of what is permitted by society.
This part of our whole socioety is a false econonmic drag and a blood sucking leach on the arteries of humanity.
When 1 % own more than the othe 99% put together, its become MORE THAN OBVIOUS that this is the result of unequal and downright criminal behaviour of the 1%.
No class or group of humanity should ever be allowed such broad and sweeping control......
We need laws which will counter and forbid these rapacious behaviours and industries which were set up for the sole benefit of those who wish to own a stranglehold on humanity.