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Politics : Sioux Nation -- Ignore unavailable to you. Want to Upgrade?

To: stockman_scott who wrote (91531)	12/11/2006 4:43:44 AM
From: Wharf Rat	Respond to of 362466

Saudis peaked? Saudis trying to keep price up? Saudis playing games to pressure us on Iraq and Iran? What did they tell Cheney, or vice versa? From the Oil Drum, with some discussion, since nobody understands what this is about.... bloomberg.com Saudi arabia increasing cuts in January ..more than quota cuts. fireangel on Sunday December 10, 2006 at 9:19 PM EST ===== [new] Rethin on Sunday December 10, 2006 at 10:08 PM EST Its short, so I'll just repost it here. Dec. 11 (Bloomberg) -- Saudi Aramco, the world's biggest state oil company, will cut crude oil shipments to customers in Asia by 8 percent below contractual volumes in January, refinery officials said. Dhahran, Saudi Arabia-based Aramco will mostly cut exports of Arab Heavy grades in January, said Asian refinery officials who received notices about the allocations and asked not to be identified because of confidentiality agreements. The cut in January is bigger than the reduction of between 5 percent and 6 percent for December shipments, the officials said. But why are they cutting heavy crude? Light I'd understand, but heavy? I thought that's where all the expansion is going into. Where all the excess capacity was. Does that mean production of heavy crude is declining or that they just can't sell the heavy stuff to refineries? ================ [new] AlanfromBigEasy on Sunday December 10, 2006 at 10:13 PM EST I do not expect KSA production to decline by -2% to -3% PER MONTH ! (delta between -5%/-6% & -8%). So a real cutback in production (mainly) this time IMHO, Alan =============== [new] peakearl on Monday December 11, 2006 at 1:48 AM EST Agreed, but there is the whole storage factor - have they been drawing supplies from storage? Want to rebuild storage? Don't know, but I think this is part of the equation. =========== [new] Charles Mackay on Sunday December 10, 2006 at 10:24 PM EST Here is a more detailed story. It appears that OPEC has already decided to cut prodcution more: UPDATE 3-Saudi deepens Asia oil supply cuts before OPEC meet Sun Dec 10, 2006 4:49pm ET TOKYO, Dec 11 (Reuters) - Top oil exporter Saudi Arabia has told major Asian refiners that it will deepen supply curbs in January versus this month, industry sources said on Monday, just days before OPEC is expected to agree a second output cut. State oil firm Saudi Aramco told two Japanese lifters and one refiner in Taiwan that it will supply them with about 8 to 9 percent less crude than under their annual contract next month. today.reuters.com eid=&cap=&from=business ================= [new] skylar on Sunday December 10, 2006 at 11:13 PM EST There's one cryptic paragraph in the article: The Taiwanese refiner said all its grades were cut, while a source with a mainland Chinese refiner said it had been granted a request for 5-10 percent less crude than it contracted to buy. Is it only the Chinese refiner or are the other refiners asking to be let out of quantities they contracted to buy? Perhaps waning demand or capacity? ========= [new] wstephens on Sunday December 10, 2006 at 10:32 PM EST cut crude oil shipments to customers in Asia That's Asia, not U.S. Maybe Papa Bush told his buddies in SA to create an oil crisis so that Jr Bush could stay in Iraq longer than the Dems want him to? ================== [new] totoneila on Monday December 11, 2006 at 2:00 AM EST Hello Wstephens, Wasn't Japan cutoff from fossil fuels leading them to attack at Pearl Harbor? If this is some kind of modern strategic plan to prevent China, and other Asian countries from trying to fill their SPRs--it is a very dangerous strategy. Bob Shaw in Phx,Az Are Humans Smarter than Yeast? ============== [new] Darwinian on Sunday December 10, 2006 at 10:33 PM EST Now why would Saudia Arabia be cutting more than their agreed upon quota cut? Could it be that they are having production problems? And this coming on the heels of news that Iran's oil production will be dropping by about 7% per year for the next ten years. Of course their cuts will not be voluntary, like Saudi's. Snicker, snicker. It will not be long before the peak is obvious to everyone, even the overly cautious ones on this list. Ron Patterson theoildrum.com