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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: michaelrunge who wrote (24485)	1/12/2005 1:40:19 PM
From: russwinter	Read Replies (2) \| Respond to of 110194

This is completely consistent with the enormous collapse in tanker rates from $11 bb to $3 in the last six weeks. see page 5: raymondjamesecm.com Middle Eastern producers simply don't plan to engage in emergency shipments going forward, trying to normalize the market (at $45-$50?). I suspect production problems as well, they've been using water injection (like eating your young). Meanwhile Iraqi production sputtering: Message 20941330

To: michaelrunge who wrote (24485)	1/12/2005 3:03:59 PM
From: Wyätt Gwyön	Read Replies (2) \| Respond to of 110194

SA to cut 30-50%?? i saw that as well. but it is a misreading. the Saudis are not cutting their overall production by 30-50%--if they did that, oil would be at $150. as stated in the article, SA cut production from 9.5 mbpd to 9 mbpd, which works out to a 5.26% reduction. the "30-50%" figure actually refers to the allocation cuts experienced by certain Europe-based traders. as the article notes: "Europe-based trading sources at major oil companies reported Tuesday cuts in the amount of crude allocations in the vicinity of 30%-50%" but overall production cuts are nowhere near this level. again from the article: "At the same time, the Saudis left unchanged or only shaved off a few percentage points for term crude customers in Asia, Europe and the U.S. whose contracts are on a delivered basis for fixed destinations."