And yet another article re gas prices and reserves and when supply is limited prices rise.Crude oil prices climb on ministers' statement
Bloomberg News
Saturday, May 13, 2000
Crude oil rose yesterday, briefly touching $30 (U.S.) a barrel for the first time in seven weeks, after oil ministers from Saudi Arabia, Venezuela and Mexico signalled that the Organization of Petroleum Exporting Countries probably won't boost production when it meets next month.
No change in output is needed "given the current market conditions and outlook," the ministers said in a statement after a meeting yesterday in Mexico. Without more oil, daily world consumption will exceed production by 220,000 barrels in the third quarter and 1.72 million in the fourth quarter, the International Energy Agency projected.
"You'll have worries about $2 a gallon retail gasoline again, and talk of sales from the [U.S.] Strategic Petroleum Reserve," said William Brown, president of W.H. Brown & Co., an oil consultancy in New York. "The velocity of this thing is quite frightening."
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