OPEC Symbolically Raises Production Limit

[hatrack]

"In a largely symbolic decision, OPEC agreed Wednesday to increase its formal production ceiling, underlining the group's resolve to bring down high oil prices. But the move will not add any oil to the market because most of OPEC's members already are producing well above their quotas and near their maximum capacity.

The Organization of Petroleum Exporting Countries will increase its nominal production ceiling to 27 million barrels a day, up from 26 million barrels a day, starting Nov. 1. The new ceiling is still lower than OPEC's actual production, which stands around 28 million barrels a day, excluding Iraqi output, which is not limited by quotas."



No, not making it up, the actual headline. Can't wait to put some symbolic gasoline in my car and see what kind of mileage I get! :evilgrin:

[Kolesar]

1. Oil is now a commodity product, not controlled by production limits

Heretofore, prices were controlled by the Persian Gulf producers increasing or lowering production, creating a cartel-based "supply and demand" exchange determining prices. Now, the supply is limited by what Earth can provide, and oil prices will experience wild price swings as a commodity forever. Peak oil is here.

[amandabeech]

2. I wonder which news service came up with the headline.

If it was AP or Bloomburg, it might show up elsewhere. If it's the ST. Louis Post-Dispatch, then the message about peak oil is penetrating the thinking of more and more people.

[Quail Fat]

3. Oil price will drop, in time for elections.

Didn't Bob Woodward predict this?

[lapfog_1]

4. No, it won't

Bandar Bush was making an empty promise. Even he probably doesn't
know the true amount of Saudi Oil reserves or pumping capacity.
The Royal family hasn't wanted the truth about their oil for well
over a decade, and hasn't told the truth for even longer.
Peak Oil is here now. No one, not even the Saudis, can "set"
the price of oil based on artificially increasing or decreasing
production.

That being said, US Oil Corporations ARE trying to influence the
election by temporarily holding the price of gasoline down and
losing potential profits for the 8 to 10 week period before the
election. Crude has been above $40/bl for months now, but without
a resulting price rise of pump gasoline. Even allowing for weeks
and weeks of "cheaper oil in the pipeline", we should have seen
$2.50/gal gasoline by now. That we haven't (and in fact, gasoline
went down $.10 in the last week or so) is an indication of market
manipulation. Enjoy it while it lasts, price is going up after
Nov 2... and WAY up next spring/summer (unless there is a world
wide recession).