OPEC to cut 2.5 million bpd

Discussion in 'Energy' started by DavidS, Oct 21, 2008.

  1. DavidS
    Offline

    DavidS Anti-Tea Party Member

    Joined:
    Sep 7, 2008
    Messages:
    9,811
    Thanks Received:
    766
    Trophy Points:
    48
    Location:
    New York, NY
    Ratings:
    +767
    UPDATE 1-OPEC may be pushed to oil cut of 2-2.5 mln bpd-Iran - Forbes.com

    TEHRAN, Oct 21 (Reuters) - Iran's oil minister said on Tuesday a drop in demand could push OPEC to cut output by 2-2.5 million barrels per day and said falling prices would hurt consumers in the long term by damaging investment in capacity.

    The Organization of the Petroleum Exporting Countries meets on Friday in Vienna, amid mounting pressure within the cartel for a production cut. The meeting was brought forward from November as prices tumbled.

    Oil prices have fallen to half their July peak of $147 a barrel. They were last trading on Tuesday above $74 a barrel.

    Iranian Oil Minister Gholamhossein Nozari told reporters on the sidelines of a gas meeting in Tehran the drop in demand for oil 'can push OPEC to cut the current production by 2-2.5 million barrels per day'.

    'The era of cheap oil is finished,' Nozari said and when asked what oil price Iran wanted replied: 'The more the better.'

    Qatari Energy Minister Abdullah al-Attiyah said at the same meeting OPEC did not fix any price for oil but that he personally believed $80-$90 a barrel was the best price for the consumer, while $100 a barrel was 'not good'.

    But Nozari said: 'I believe that with $80-$90 (a barrel) ... some countries can be harmed with this price.'

    Some analysts say Iran, OPEC's second-biggest producer after Saudi Arabia, needs nearly $100 a barrel to balance its books. Others cite a figure of around $70-$75 a barrel, but even the lower figure is roughly where oil prices are now or below them.

    Nozari, echoing his previous comments, said investment costs for new oil projects were rising and, as a result, falling crude prices might damage such investment, which would hurt consumers in the long term.

    Iran's OPEC governor, Mohammad Ali Khatibi, said there were differing views in OPEC about what level of cut was needed, referring to a range of 1-3 million bpd. Khatibi previously said OPEC could make any cut in stages when it meets.
     
  2. editec
    Offline

    editec Mr. Forgot-it-All

    Joined:
    Jun 5, 2008
    Messages:
    41,427
    Thanks Received:
    5,598
    Trophy Points:
    48
    Location:
    Maine
    Ratings:
    +5,617
    This move seemed inevitable.

    Americans should respond to this by cutting back on oil use even harder, if they can.
     
  3. xaxeptance449
    Offline

    xaxeptance449 Xaxe449

    Joined:
    Oct 20, 2008
    Messages:
    77
    Thanks Received:
    7
    Trophy Points:
    6
    Ratings:
    +7
    An interestring statement especially the if they can part. Seemingly to me at least the lines at gas stations have grown considerably thus forcing me to think if they are willing, not if they can. Of course they can, but few Americans will, I suspect.
     
  4. chopcrazy
    Offline

    chopcrazy Member

    Joined:
    Aug 1, 2008
    Messages:
    143
    Thanks Received:
    9
    Trophy Points:
    16
    Ratings:
    +9
    I wonder what will happen with the Obama's windfall profit tax on oil company profits. Obama's proposal is a 20% tax on barrels of oil over $80.
     
  5. KMAN
    Offline

    KMAN Senior Member

    Joined:
    Jul 9, 2008
    Messages:
    2,683
    Thanks Received:
    268
    Trophy Points:
    48
    Ratings:
    +269
    Doesn't it seem silly to be paying these countries money for oil when we have it here???? This is proof that the price of gas is NEVER coming down as long as we are dependent on these middle eastern countries... Why is this so hard to understand?
     
  6. Andrew2382
    Offline

    Andrew2382 Gold Member

    Joined:
    Oct 1, 2008
    Messages:
    3,994
    Thanks Received:
    530
    Trophy Points:
    153
    Ratings:
    +537
    I am glad Obama only plans at "LOOKING" at drilling.

    Whata fucking joke, we have the most oil in the world and aren't touching it
     
  7. deaddude
    Offline

    deaddude Senior Member

    Joined:
    Apr 27, 2004
    Messages:
    1,403
    Thanks Received:
    77
    Trophy Points:
    48
    Ratings:
    +77
    Yes because drill here, drill now would solve all of our energy problems immediately. Oh wait, there would be NO SHORT TERM BENIFIT and the long term benifit (say ten years down the road) would be negligible.
     
  8. PeterS
    Offline

    PeterS Active Member

    Joined:
    Sep 7, 2008
    Messages:
    973
    Thanks Received:
    71
    Trophy Points:
    28
    Ratings:
    +71
    Why would it come down if we drill? What does our dependence, or independence, have to do with the price of oil. Are you suggesting nationalizing oil? How else are you going to control the price of an international commodity?
     
  9. elvis
    Offline

    elvis BANNED Supporting Member

    Joined:
    Sep 15, 2008
    Messages:
    25,882
    Thanks Received:
    4,303
    Trophy Points:
    0
    Ratings:
    +4,303
    America should respond by telling the Arabs they'll pull out of their country if they don't lower the price.
     
  10. jakey1
    Offline

    jakey1 Rookie

    Joined:
    Oct 24, 2008
    Messages:
    3
    Thanks Received:
    0
    Trophy Points:
    1
    Ratings:
    +0
    winter is coming, it'd be a tough thing to do!
     

Share This Page