Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : DON'T START THE WAR -- Ignore unavailable to you. Want to Upgrade?

To: Rascal who wrote (18673)	3/10/2003 10:26:43 PM
From: Karen Lawrence	Read Replies (1) \| Respond to of 25898

When the gas prices started rising, Triple A said it was looking like price gouging. Who's holding back barrels at $40?" asks a senior OPEC delegate. "Every drop is in the market." But, without addressing how more can be given when the well is essentially dry, the statement acknowledges "producers' willingness to increase production if necessary to address any further supply disruptions." The crux of the statement is the assurance that the IEA members, which hold 4 billion barrels of strategic oil reserves, are committed "to make additional volumes of oil available to the market to reinforce producers' efforts if needed." Virtually all oil traders are expecting the 600 million-barrel U.S. Strategic Petroleum Reserve and other IEA tanks to be tapped, and are poised to send prices crashing in what could be a repeat of the start of the January 1991 Gulf War. Back then, oil prices fell by more than $10.50 a barrel, or about one-third, when the SPR was opened and the war was proven to be heading to a lopsided U.S. victory. A similar drop today would leave prices just over $25 - back in OPEC's comfort zone.