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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: Fiscally Conservative who wrote (91264)	9/28/2007 5:50:35 PM
From: Umunhum	Respond to of 206131

I gather there are no Bears lurking in your neck of the woods. What is there to be bearish about? OPEC has already shown that it can and will defend $60 crude oil. OPEC's latest increase was rightfully seen as a non-event by the market. I personally believe that they are all producing flat out and so the only thing that OPEC can do at this point is protect the downside. Take a look at their quotas: opec.org and compare it to what they are producing according to the EIA: eia.doe.gov Quota for Quota for EIA 9/10/2007 11/01/2007 Producing #'s Algeria 835 860 1829 Indonesia 1412 1428 971 Iran 3934 4007 3924 Kuwait 2147 2189 2425 Libya 1428 1458 1680 Nigeria 2206 2248 2315 Qatar 691 706 828 Saudi Arabia 8719 8877 8626 UAE 2343 2385 2606 Venezuela 3085 3142 2424 Total 26800 27300 27628 Iran, Nigeria, and Saudi Arabia are the only countries producing close to their quotas. We all know the story about Nigeria and both Iran and Saudi Arabia have been producing below their quota for months. Both countries internal demand is going up leading a realist to believe that something is different this time. I believe the Fed is going to continue to print away and the dollar is going to continue to decline. A recession in the U.S. will hurt the dollar making oil cheaper for the rest of the world as more countries depeg from the dollar. The only sane thing to do at this point is leverage what dollars you have into something tangible.