Saudi Oil announcement today

[swag]

Heard on CNBC - Saudi Arabia's Oil Ministry is making some sort of significant announcement today re: oil production. Crude futures slipped a bit on this. Will update in this thread if somebody doesn't beat me to it.

Bandar's trying again for Bush, looks like.

[Fovea]

1. I am wondering what they can do.

Unless they decide to destroy OPEC and sell at a temporary loss for the shrub. If they do that, I see a bad moon rising for the princes and princesses.

[swag]

2. Saudi Arabia pledges to amp the output

http://biz.yahoo.com/cbsm-top/040811/51bff4dea0eca31edb37db334267aa1d_1.html

CBS MarketWatch
U.S. stocks bounce as crude plunges below $44
Wednesday August 11, 11:16 am ET
By Susan Lerner


NEW YORK (CBS.MW) - A slide in crude prices after Saudi Arabia said it would boost output lifted the major indexes off their lows Wednesday but stocks remained sharply lower amid a series of warnings from the tech sector.
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Crude plunged below $44 a barrel after the Saudis said they were ready to raise output by 1.3 million barrels per day "immediately" to help meet world demand and curb soaring prices, according to AFP.

September crude was last down $1.02, or 2.3 percent, to $43.50 a barrel on the New York Mercantile Exchange. See Futures Movers.


. . .

[Fovea]

3. I do not believe they can do it.

I heard from a friend of mine that in de bidness that their surplus capacity was at something like 300K bbl/day pumping flat out.

[swag]

4. It surprised me as well

Might just be a desperate move to jawbone the futures market down to take the heat off their crime confederates in the White House.

[Wwagsthedog]

5. Some of the issue here is the quality of the crude increment

Most of the marketable fields in Saudi Arabia are now producing flat out. Any marginal uptake in crude production will be heavier, more sulpher laden, oil that has limited global demand. The Saudis have been announcing that "new" fields (Abu Safa & Qatif) are about to be moved into production. We'll have to see how this all plays out. Don't hold your breath waiting for lower prices at the pump.

[olddem43]

6. It doesn't surprise me -

They have to boost output now so there is time for gas prices to be significantly reduced by election day. There is a 2 or 3 month lag between production and gasoline supplies. This is exactly what was reported a few months ago - that the Saudis would try to lower gas prices in time to help Bush be re-selected. The average person will be very happy that gas will be (however temporarily) back to former price levels.