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OPEC has one of worst meetings ever, near breakup, keeps output on hold causing oil price jump

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posted on Jun, 8 2011 @ 10:25 PM
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news.yahoo.com...


VIENNA – OPEC unexpectedly left its production levels unchanged Wednesday, causing oil prices to jump, as senior officials said their meeting ended in disarray — a stunning admission for an organization that places a premium on consensus decision making.



"We are unable to reach consensus to ... raise our production," OPEC Secretary General Abdullah Al-Badri told reporters, in comments reflecting unusual tensions in the 12-nation Organization of the Petroleum Exporting Countries.



Saudi oil minister Ali Naimi called it "one of the worst meetings, we've ever had," while analysts covering OPEC for more than 20 years said they could not remember any other time that the normally closed group had admitted to such divisions in its ranks.


Well, here we go again. It was nice that gas has been getting cheaper, but I guess not anymore.

I wonder how bad this meeting actually was?


Some even saw the abortive meeting as a harbinger of demise for the organization, which produces more than a third of the world's petroleum.



"OPEC is ... on the point of break-up," said Marc Ostwald of Monument Securities. "A broader perspective is that the post World War II world order is fracturing in a spectacular fashion, be it the EU/Eurozone, the World Bank/IMF, (or) OPEC."


Well then....how could things get worse now?


Tuesday's sober assessment of the U.S. economy from Federal Reserve chairman Ben Bernanke added to concerns, especially as the central banker failed to indicate that more monetary stimulus was likely.


Hmmm....




posted on Jun, 8 2011 @ 10:53 PM
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Doesn't sound good at all. Bloomberg says that Gasoline Futures jumped today, along with Crude which is up almost .60 cents.

What exactly would a break up of OPEC mean? A complete cutoff of oil supply? Or would it mean the West would have to purchase directly from the countries, raising prices?

Or would it be good because countries could begin to produce more, unrestricted?

Hopefully I don't sound too dumb.



posted on Jun, 8 2011 @ 11:03 PM
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reply to post by isthisreallife
 


Ive checked marketwatch a few times today, and oil has slowly went up. I havent check gasoline futures yet.

From the OP article, OPEC delivers around 1/3rd of the worlds oil. I believe it would cause nations, such as the US, to start drilling more in their own country, or find other countries to get their oil from. No doubt this would cause a massive increase in prices atleast right after OPEC breaks up. Im not sure how long it would take until the US is producing as much oil as we have been getting from OPEC.



posted on Jun, 8 2011 @ 11:18 PM
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reply to post by buni11687
 


Well, as many economists will say, the US does not want to have to drill its own oil. That would be counter-productive in the long run.

I believe we would work a direct deal with a nation like Saudi Arabia to where they supply us with the majority of the oil that was coming from the entire organization. Who knows? Maybe that could be better for the West once the dust settled from the collapse.



posted on Jun, 8 2011 @ 11:31 PM
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Almost seems as though another cog in the machine just got turned. Planned?




posted on Jun, 8 2011 @ 11:43 PM
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reply to post by no time
 


Planned? Isnt it funny how this OPEC stuff happens right after some of the worst recent economic news comes out plus stocks going down? I think Gerald Celente also said this was about to happen soon.



posted on Jun, 9 2011 @ 01:12 AM
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reply to post by buni11687
 


I think your spot on with that call, convenient. Stocks drop, a grip of states busted up by tornadoes And a southwest rampant with fire, violence and crazy policeman( even crazier senior citizens) no offense to you Arizonans we've all got our issues



posted on Jun, 9 2011 @ 01:12 AM
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reply to post by buni11687
 


I think your spot on with that call, convenient. Stocks drop, a grip of states busted up by tornadoes And a southwest rampant with fire, violence and crazy policeman( even crazier senior citizens) no offense to you Arizonans we've all got our issues



posted on Jun, 9 2011 @ 01:50 AM
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Maybe, maybe one day oil will be gone.
Meanwhile, something we are not lacking is excuses for price jumps.



posted on Jun, 9 2011 @ 08:44 AM
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Originally posted by POPtheKlEEN89
reply to post by buni11687
 


I think your spot on with that call, convenient. Stocks drop, a grip of states busted up by tornadoes And a southwest rampant with fire, violence and crazy policeman( even crazier senior citizens) no offense to you Arizonans we've all got our issues


And hurricane season just started...with all this heat, those ocean temps are going to be nice and toasty come late July/early August and there's bound to be at least one ripper to hit either the gulf or the east coast.




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