Saudi Arabia Cuts Oil Output, Export: Industry Report

A data institute has released information that Saudi Arabia has actually CUT OIL PRODUCTION in December !!

Even with all the foreknowledge of Iran sanctions and threats to stop imports ahead of sanctions ???

I thought they said they were going to increase to make up the differences ???


Sunday, 19 Feb 2012 | 7:32 AM ET -- CNBC

The world’s top oil exporter, Saudi Arabia, appears to have cut both its oil production and export in December, according to the latest update by the Joint Organizations Data Initiative (JODI), an official source of oil production, consumption and export data.

The OPEC heavyweight saw production decline by 237,000 barrels per day (bpd) from three-decade highs of 10.047 million bpd in November, the JODI data showed on Sunday.

The draw-down was sharper for the actual amount exported, declining by 440,000 bpd, or 5.6 percent, to come in at 7.364 million bpd, the data also showed. The level would still be similar to exports after a steep ramp-up last June.

The Good Oil People of Saudi Arabia ?


Are they manipulating the price of oil and profiting ??

reply to post by xuenchen


Interesting,
They could have been increasing their export stockpile on anticipation of greater demand, which allows them to jack up prices and supply more buyers.
I would love to see them stop selling to Europe as well, that would be awesome.

Saudi Arabia has actually CUT OIL PRODUCTION...................KERCHING , the world is awash with oil , yet as always they hold the planet to ransom , America uses $ 1 billion dollars worth of crude a day , the little people suffer , while the fat cats gorge themselves in profit.

Really? Are we so short sighted here to think that cutting oil is to profit just from inflated oil sales?

The world is not exactly in the most stable period. During stability I might agree with the sentiment, but I believe there are far larger implications to cutting oil production given the current world climate.

I wonder if Saudi's have actually covertly been in bed with the Iranians the whole time whilst pretending to be friends of the West.

Would be an immense blow if Saudi Arabia stops their exports too.

The systems rigged
from top to bottom.

Free market my ass!!

Originally posted by Melbourne_Militia
I wonder if Saudi's have actually covertly been in bed with the Iranians the whole time whilst pretending to be friends of the West.

Would be an immense blow if Saudi Arabia stops their exports too.

Would be an immense blow when someone invades one of those countries because of it... wouldn't it? So who is in bed with who?

reply to post by xuenchen

Are they manipulating the price of oil and profiting ??

How much profit can they realize when costs of their imports go up because of oil price increase.

Imports - partners:

US 12.4%, China 11.1%, Germany 7.1%, Japan 6.9%, France 6.1%, India 4.7%, South Korea 4.2% (2010)

factbook

Originally posted by boncho
reply to post by xuenchen

Are they manipulating the price of oil and profiting ??

 

How much profit can they realize when costs of their imports go up because of oil price increase.

Imports - partners:

US 12.4%, China 11.1%, Germany 7.1%, Japan 6.9%, France 6.1%, India 4.7%, South Korea 4.2% (2010)

factbook

Pretty easy actually.

They buy and sell futures contracts and option contracts.

They can make money on price increases and decreases.

I bet they have been buying long contracts recently.

Long contracts make money when the price goes up.

Short contracts make money when the price falls.

A bit complicated, but easily done by professional money people.

Remember all the talk about "short" contracts on the airlines right before 9/11 ?

Those contracts made big profits when the stock prices went down when the market reopened a week after after 9/11.

I wonder who got rich ?

reply to post by xuenchen


That only works if they have somewhere to spend the money that isn't affected by oil price increases. Unless the people profiting are planning to retire in some hippie commune, I ask again, how exactly are they profiting off of it.

Are you speaking the entire country here, or speaking solely on the money/commodity changers involved in the trades pertaining to oil?

Originally posted by boncho
reply to post by xuenchen

 

That only works if they have somewhere to spend the money that isn't affected by oil price increases. Unless the people profiting are planning to retire in some hippie commune, I ask again, how exactly are they profiting off of it.

Are you speaking the entire country here, or speaking solely on the money/commodity changers involved in the trades pertaining to oil?

The profits just keep building up and stay in holding accounts.

They have large property holdings also like real estate etc.

The "entire country" would set up small investment companies in the U.S./U.K.

Those companies have trading accounts and make the trades.

They ARE the money/commodity changers on a large scale.

reply to post by xuenchen


Okay, so my point is, because Saudi is a large importer of goods from the US and China, and because those products are tied to oil prices.... Their import cost would increase.

Because all manufactured goods (even agriculture) is tied in some way to the cost of oil.

I remember being in China during the first oil cost increase. Products there were literally going up in price overnight. So I ask again, (probably for the third time)... Just how much profit is being realized?

Or does the balance sheet at the end of the year mean nothing? Did you really think people who make markets are as shortsighted as the people who read about it in the news...?

Originally posted by boncho
reply to post by xuenchen

 

Okay, so my point is, because Saudi is a large importer of goods from the US and China, and because those products are tied to oil prices.... Their import cost would increase.

Because all manufactured goods (even agriculture) is tied in some way to the cost of oil.

I remember being in China during the first oil cost increase. Products there were literally going up in price overnight. So I ask again, (probably for the third time)... Just how much profit is being realized?

Or does the balance sheet at the end of the year mean nothing? Did you really think people who make markets are as shortsighted as the people who read about it in the news...?

edit on 19-2-2012 by boncho because: (no reason given)

The profits are from commodity contract trading.

It's completely separate from buying and selling goods and materials.

It's all on paper. Like Derivatives

Energy derivative

If the OPEC managers decide to create a "shortage" or "over supply", obviously they have a big advantage as "insiders" and THAT makes it easy to "speculate" in the right direction.

reply to post by xuenchen


So first you said it was Saudi Arabia realizing profits, but now you are claiming it is the traders involved in the transactions who are realizing profits?

Yes?

The Good Oil People of Saudi Arabia ?


Are they manipulating the price of oil and profiting ??

reply to post by xuenchen

It's completely separate from buying and selling goods and materials.

Not if you have to use the money from commodity sales to purchase goods and materials that are inflated because of inflated commodity sales. Isn't it?

Originally posted by boncho
reply to post by xuenchen

 

So first you said it was Saudi Arabia realizing profits, but now you are claiming it is the traders involved in the transactions who are realizing profits?

Yes?

The Good Oil People of Saudi Arabia ?


Are they manipulating the price of oil and profiting ??

They are the traders also !!

They have agencies that make the trades for them.

reply to post by xuenchen


Hi circle, meet your argument.

So they have to pay more for their imports if imported goods costs go up? Yes/no?

Originally posted by boncho
reply to post by xuenchen

It's completely separate from buying and selling goods and materials.

 

Not if you have to use the money from commodity sales to purchase goods and materials that are inflated because of inflated commodity sales. Isn't it?

They invest the commodity profits in real estate and other investments, or they keep the cash, or they buy gold, or all of the above.

They use straight profits from direct sales of oil to buy goods and materials.

reply to post by xuenchen

They use straight profits from direct sales of oil to buy goods and materials.

So when they pay for goods that have inflated prices because of inflated oil prices, the profit they thought they realized was not realized.

Yeah?

Originally posted by boncho
reply to post by xuenchen

 

Hi circle, meet your argument.

So they have to pay more for their imports if imported goods costs go up? Yes/no?

The profits are more than the expenses from general price increases on goods and materials.

And they still get more profit from direct oil sales.

This is why they have amassed all that wealth.