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March 7, 2007
Saudi Arabia: OPEC Cut Production, Will Cut Even More
I recently heard a minor conservative radio talk host railing against the "greed" of gas station owners, blaming them for the rise in gas prices. (So-called liberals--socialists, really--speak this way all the time, so it isn't newsworthy.) I could not help but be dissapointed an usually reasonable man would fall for such an ignorant, divisive explanation. The price of oil, and consequently the price of gas, is determined, like most everything else, by an interplay between supply and demand. The supply side, however, is largely determined by the international oil cartel OPEC, lead by our friends the Saudis. This is why oil prices have been climbing after a short-lived drop: Saudi Arabia leads Opec output reduction
NEW YORK -- Crude oil production by members of the Organisation of Petroleum Exporting Countries (Opec) dropped by 85000 barrels a day last month, as Saudi Arabian output fell to its lowest level in almost three years, a survey shows.Production for Opec, which pumps about 40% of the world’s oil, fell 0,3% to an average 29,89-million barrels a day, according to the survey of oil companies, producers and analysts. Totals for January and last month include estimates for Angola, which became the 12th Opec member on January 1.
The 10 members of Opec with production quotas cut output by 335000 barrels, or 1,2%, to 26,48-million barrels a day last month. Angola and Iraq do not have quotas.
The 10 countries, in an effort to bolster prices, pledged to trim a total of 1,7-million barrels a day from production in two rounds of cuts, one that started on November 1 and another that took effect last month.
The producers cut an average of 1,03-million barrels a day over the period, the survey shows.[...]
Posted by Ruy Diaz at March 7, 2007 12:12 PM
Comments
This way we won't notice as big a supply drop if the Middle East oil refineries are the first collateral damage should Isreal be attacked.
Posted by: Catawhumpus ![[TypeKey Profile Page]](http://www.westernresistance.com/nav-commenters.gif)
at March 7, 2007 8:46 PM
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