WP: Saudis Offer to Boost Production

[kskiska]

Saudis Offer to Boost Production

Thursday, August 12, 2004; Page A01

Saudi Arabia sought to calm turbulent oil markets yesterday by offering to boost production, but after an initial drop in prices the cost of oil rose again by day's end.

The Saudis' failed attempt to jawbone prices lower suggests to many industry specialists that current conditions -- production at near capacity, surging demand and fears of terrorism -- are curtailing the long-established power of the kingdom in international markets.

"In a sense, it's a perfect storm," said Fareed Mohamedi, chief economist for PFC Energy, a District-based consulting firm. "Many factors have just all come together and pushed the Saudi ability to the wall."

Rising oil prices have become an issue in President Bush's reelection. The U.S. Federal Reserve on Tuesday blamed the run-up in oil prices for the recent sharp slowdown in the economy.

more…
http://www.washingtonpost.com/wp-dyn/articles/A58189-2004Aug11.html

[unfrigginreal]

1. Surprise, surprise

the promised gift from Bush's extended family has arrived.

[olddem43]

2. What a coincidence! Saudis boost production just

like Woodward said. And in time to reduce gas prices by election day. Or so they hope. Will the average SUV driver even notice?

[whistle]

3. Right, oil is now $44.85 a barrel so why not maximize profits....

...they apologize that they can only boost production just a little. But, I think they could squeeze out a few more million barrels a day if the price goes to saaaaaay.....$55.00 per barrel. What do you think Shrub, can you swing that by your acceptance speech?:hurts:

America's appetite for oil is just unquenchable.:hangover:

[Fovea]

6. The problems

I don't think they can ramp up an additional million bbls per day.
I also don't think they can subvert the will of the rest of the producers, who are determined to set a new floor, based on a scarcity model.

[Kool Kitty]

4. Well, isn't this special?

Looks like W called his buddy, Bandar.

[Fovea]

5. Wagga wagga wagga

I do not believe they can significantly increase production. This is a very weak sop thrown half heartedly to Dubya from his lukewarm allies.

On the other side of the issue, Saudi fortunes are failing fast both in terms of stability within, and influence without.
When they fall, we will nationalize their American accounts and resources.

With Yukos, the Iraqi stoppage, and the coming collapse of SA, we are steaming into the perfect storm for oil prices and along with it, our economy.

[amandabeech]

7. Heavy, perhaps high sulphur, crude doesn't make much gasoline.

And not all refineries can handle the stuff. Accoring to Simmons, if you put Saudi heavy through a standard refinery you'd get asphalt. Put that in your Suburban and burn it.

I don't think that gasoline prices will go down unless we get a lot of gasoline in here.

In addition, refiners are going to have to get cracking on producing heating fuel oil, which is heavier than gasoline. Gasoline demand should go down after Labor Day, but who's to say how much. Fuel oil is used in New England and the Mid-Atlantic states primarily. Good-bye New Hampshire and Pennsylvania, George.

[puerco-bellies]

8. My colleagues and I were watching oil prices suddenly drop this morning

And we were wondering what happened. They dropped 1 dollar a barrel. That's a $1,000 dollar move in the futures market. Then the Saudi announcement came over the wires and we laughed. Sure enough the price climbed up and broke in to positive numbers. The Saudi's don't have much more capacity, and what they do is higher sulfur crude. Less value and more expensive to turn into useful products. It was a reach around from Bandar Bush for his bitch *, nothing more.
P-B